Mutual Agreement Procedure Vat

If doubts or difficulties arise as to the interpretation or application of the tax convention or if taxpayers meet with the tax authorities about the tax treatment of their activities, Article 25 of the OECD Model Agreement on Income and Capital (“OECD Model Convention”) provides for a mechanism – the mutual agreement procedure (MAGP) – to resolve such difficulties or disputes. The mutual agreement procedure (MAP) (also known as the competent authority procedure (CAP) is a management procedure designed to help resolve the difficulties that arise: the OECD publishes statistics on mutual agreement procedures in OECD member countries under the “map statistics”. Once the request has been received, the BZSt verifies that the conditions for the implementation of a mutual agreement procedure are met. The transnational part of a mutual agreement procedure shall only be implemented if the request is admissible and duly reasoned and if no satisfactory solution can be found in Germany. The amicable agreement becomes binding only if the taxpayer consents in writing, waives the right of appeal and withdraws pending appeals. For the purchase of goods and services, VAT (VAT) must be paid in many countries. The input VAT refund procedure allows businesses, embassies/consulates and international organisations to . We need to agree with the authorities of the other country on what good taxation is. Some cases can be resolved without the authorities of the other country being involved. The double taxation agreement is available on the website of the Federal Ministry of Finance. .

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Fotos: Kathrin Leisch
Impressum | AGB