LTD shareholders as a company subject to VAT according to § 2 UStG

In the previous post, we reported on the information letters from the tax offices regarding the Federal Ministry of Finance's letter dated December 30, 2020.

These letters are currently being supplemented by letters informing the LTD shareholder personally of a VAT number, or announcing the allocation of VAT numbers. Usually, these letters refer to the Federal Ministry of Finance's letter dated December 30, 2020, and additionally note that the LTD will continue to be treated as a subject of corporate tax due to the Brexit Tax Accompanying Act.

As a result, the tax offices assume that taxes for LTDs will be declared using two tax numbers in the future. The existing tax number of the LTD will continue to be used for the corporate tax declaration. A VAT number assigned personally to the entrepreneur will be used for VAT declarations.

These letters typically do not come with legal remedy instructions but are likely to have regulatory content and thus represent an administrative act against which legal remedies are permissible.

You can download a non-binding sample of a corresponding objection further below. Before possibly initiating legal action, you should ...  

In the previous post, we already reported on the information letters from the tax offices regarding the BMF letter dated December 30, 2020.

These letters are currently being supplemented by letters in which the LTD shareholder is personally notified of a VAT number, or the assignment of VAT numbers is announced. These letters usually refer to the BMF letter of December 30, 2020 and additionally note that the LTD will continue to be treated as a corporate tax entity, due to the Brexit Tax Accompaniment Act.

As a result, the tax offices assume that taxes for LTDs should be declared using two tax numbers in the future. The existing tax number of the LTD should continue to be used for the corporate tax declaration. A VAT number assigned to the entrepreneur personally should be used for the VAT declarations.

Typically, these letters do not come with a legal remedy instruction, but they should have a regulatory content and thus represent an administrative act against which legal remedies are permissible.

A non-binding template for an appropriate objection can be downloaded further below. Before potentially filing a legal remedy, you should seek advice from your tax advisor or lawyer.