Show me your papers! TEI urges repeal of new German VAT documentation requirements.

• Position: Recent Activities

Last November, the German government approved amendments to its VAT rules to require mandatory use of specified documentation to substantiate the zero-rating of intra-EU sales of goods. Previously, German tax authorities had accepted documents created in the ordinary course of business to substantiate that goods shipped from Germany to another VAT-registered business in the EU qualified for zero-rating. In a submission to the European Commission, TEI has challenged the efficacy of the change. "Although the new rules have been touted as simplifying compliance for businesses, TEI and other organizations agree that the new requirements would create new risks and effectively render zero-rating inapplicable to certain transactions," observed TEI President David M. Penney.

TEI's March 7, 2012, comments to the European Commission detailed its concerns about the German substantiation requirements. The Institute argued that...