What changes in 2020 for employers with personnel in Germany?
As is often the case, new rules come with the new year for employers in 2020. In Germany, too. Do you have employees in Germany? Then please read on with due attention!
Value added tax and company cars
First and foremost, a key point of attention about company cars in Germany. In contrast to many other countries, making a company car available to an employee in Germany often results in VAT liabilities.
Since 1 July 2013, a European directive applies relating to value added tax. Pursuant to this directive, renting or leasing vehicles to non-entrepreneurs (such as employees on your payroll) for longer than 30 days means that the residential address of such persons is classed as the lease location. The German Ministry of Finance classes making a company car available to an employee for longer than 30 days as long-term lease if the employee is permitted to use the car for private purposes too.
- As an employer in Germany, you are liable for VAT if you make a company car available to an employee on your German payroll if your employee is also permitted to use this car for private purposes.
- In that event, you are subject to mandatory registration for value added tax in Germany and you are required to file an annual value added tax return accordingly.
At your request, from 2020 onwards, Interfisc is able to take care of such VAT registrations and administrative requirements in combination with the German payroll administration for you. That means having a single point of contact for your full German accounting.
In 2020, the fixed expense allowance for business travel will be amended in Germany
From 1 January 2020, you may pay out the following net amounts for business travel within Germany to employees on your German payroll:
- € 28 for a 24-hour business trip (leaving from home or office). This was previously € 24
- € 14 for the day of departure and the day of returning. This was previously € 12
- € 14 for a business trip of more than 8 hours without overnight stay. This was previously € 12
Updated ceilings for German social security in 2020
The ceiling amounts for the calculation of social security contributions in Germany are updated annually in January; also this year in January 2020.
Click here for a list of the new ceiling amounts.
This is just a selection of the changes to be implemented in 2020. Do you have any questions? Or do you need advice? Please do not hesitate to contact us.
Keep up to date on the latest news!
Sign up for our newsletter and receive the latest information on employer obligations in the Netherlands, Belgium, Germany, France, Italy and the United Kingdom.
Together, solution-oriented and caring
Since 1972, Interfisc has offered international HR & Payroll solutions in the Netherlands, Belgium, Germany, France, the United Kingdom, and Italy. We do this from our offices in the Netherlands and Belgium, and with an international team of around 45 committed and caring employees.
Need to know more?
Questions about what needs to be done?
Our customer support team is at your service, you can reach us by phone or via the contact form.
Not found what you were looking for?
In the world of international employment, every situation is unique.
If our website does not provide the answers, please do not hesitate to contact us, together we can work out the best solution (to your needs).
Subscribe to our newsletter!
Stay up to date on employer obligations in the Netherlands, Belgium, Germany, France, the United Kingdom and Italy.