Assess reporting obligations for cross-border tax arrangements

Surprisingly, Germany – contrary to the recommendation of the EU Commission – has not extended the reporting deadlines for cross-border tax arrangements: Since 1 July 2020, such arrangements must therefore be reported to the tax authorities within 30 days. This is provided for by EU Directive 2018/822/EU (DAC 6), which was transposed into domestic law with the Act on the Introduction of an Obligation to Report Cross-Border Tax Arrangements (“Gesetz zur Einführung einer Pflicht zur Mitteilung grenzüberschreitender Steuergestaltungen”). The reporting obligation also applies retroactively: Cross-border tax arrangements that were implemented between 25 June 2018 and 30 June 2020 or whose implementation began during this period must be reported by the end of August 2020. In these cases, however, it should be possible to report without objection by 30 September 2020.

Compliance risk for companies

Who is obliged to report? Not only intermediaries, such as tax consultants, lawyers or auditors are targeted. Financial service providers and other companies as well as the users of tax arrangements are also affected. Failure to report may result in heavy fines. In addition, it must be taken into account that other Member States may have further and more extensive reporting obligations.

GvW-Tool identifies reporting obligations

It is therefore all the more important that you check reporting obligations in your cross-border business transactions. Our free Tool helps you to identify the reporting obligations.

Our Tool includes a free initial assessment. However, the use of the Tool cannot replace individual legal advice.