Germany MOF Posts Draft Bill for Tax Amendment Act 2025

The German Ministry of Finance Sept. 4 posted a draft bill for Tax Amendment Act 2025. The bill includes measures to: 1) permanently reduce the VAT rate to 7 percent for restaurant and catering services, excluding beverages, from Jan. 1, 2026; 2) increase the flat-rate commuter allowance to 0.38 euros (US$0.44) per kilometer from the first kilometer for all taxpayers, including those maintaining dual households for work purposes; 3) remove the sunset date of the mobility premium for low-income earners to continue it after 2026; 4) modify VAT rules concerning electronic notification of denied refund requests by abolishing the requirement ...