The German Federal Ministry of Finance (BMF) has released important updates regarding the VAT (Umsatzsteuer) prepayment and advance filing procedure for 2025. These updates include the publication of new forms and significant changes that businesses operating in Germany should be aware of. Below, we provide an overview of the key points.
Updated VAT Forms for 2025
The BMF has issued updated templates for the following forms, which are essential for VAT compliance in 2025:
- USt 1 A: VAT Prepayment Form 2025
- USt 1 H: Application for a Permanent Filing Extension and Special Prepayment 2025
- USt 1 E: Instructions for VAT Prepayment Filing 2025
- USt 5 E: Instructions for the Application for Permanent Filing Extension and Special Prepayment 2025
These forms provide guidance on meeting your VAT obligations and reflect the latest regulatory changes.
Key Points from the BMF Communication
The BMF communication accompanying the updated forms emphasizes several important aspects:
- Revised Small Business Regulation
Starting in 2025, there will be significant changes to the small business (Kleinunternehmer) regulation. The communication explains how businesses can opt into this regime and highlights special provisions for companies based in other EU member states. - Reporting of Tax-Exempt Revenues
Businesses are reminded that tax-exempt revenues must also be declared, in addition to the key figures relevant for standard VAT taxation. This ensures comprehensive and accurate VAT reporting. - Special Reporting Procedures for Tax Exemptions
The document outlines specific reporting procedures related to tax exemptions applied in other EU member states (§ 19a UStG). - Taxation Based on Average Rates
Additional details are provided regarding taxation under average rates for agricultural and forestry businesses. - Permanent Filing Extensions and Special Prepayments
The communication includes instructions for applying for a permanent filing extension and making a special prepayment. This process helps businesses manage their VAT obligations more flexibly.
Preparing for 2025
The new regulations and updated forms come into effect for the 2025 calendar year. Businesses should familiarize themselves with these changes to ensure compliance and to avoid any administrative issues. Companies operating across borders within the EU should pay particular attention to the special provisions outlined in the communication.
If you have questions or require assistance with VAT compliance in Germany, feel free to contact us at WW+KN, a Baker Tilly Company, via info@vat-germany.com.
