Structures and processes of municipal institutions and business are converging. We support local authorities and public institutions that have to solve sometimes significant challenges, e.g. in financial management or with the “New regulation of turnover taxation of public authorities – §2b UStG”.
Especially public corporations (KdöR) are confronted with numerous new tasks every day. Many processes are subject to constant change and present additional challenges to local authorities and associations. One of these challenges is the new regulation of the value added tax law.
What exactly is this about?
As of 01.01.2017, the turnover taxation of public corporations (KdöR) was put on a new legal basis by the new § 2b of the Turnover Tax Act (UStG).
After a transitional period until 31.12.2020, the new taxation rules are mandatory. The specialist literature (Küffner, DStR 2018, p. 2483) already flirts with the fact that the legal consequences of the change in the law led to “chaos in the public sector”. A great need for action has therefore arisen for the public sector. Not all municipal levels are currently aware of the scope of the measures to be taken.
What do we need to be aware of?
In essence, the amendment to the law is about the fact that public corporations are now basically treated like a normal, commercial enterprise and that they have to subject their income as turnover to VAT. In many cases, this first requires a fundamental analysis of the income and expenditure that has flowed, which must be classified for tax purposes. There are also a number of exceptions and privileges for public corporations under VAT law, but these must be verified by experts.
New regulation of the turnover taxation of public authorities – §2b UStG
Especially public corporations (KdöR) are confronted with numerous new tasks every day. Many processes are subject to constant change and present additional challenges to municipalities and associations. One of these challenges is the new regulation of the value added tax law.
Your ACCONSIS contact person
Dipl. Fin.-W. (FH), Steuerberater
Geschäftsführer der Acconsis GmbH Steuerberatungsgesellschaft
+49 89 54 71 43
or per E-Mail
“As the person in charge of associations and representatives of municipalities, you have a great responsibility. Public corporations are treated like a normal, commercial enterprise. Therefore, you are subject to various obligations that you would also have as an independent company. As a tax specialist, I can quickly gain an overview of your corporation and help you to meet all deadlines and requirements in accordance with the law. Just give me a call.”