Germany published the updated graphical version of its preliminary VAT return (USt 1 A) for the 2026 reporting period. The changes reflect a mix of legal updates and minor editorial adjustments, but a few of them have real implications for how businesses prepare and file their VAT returns.
Here’s what tax teams need to know.
Transitional provisions for goods stored before 1 January 2026
A new transitional provision has been introduced into Section 27(40a) of the German VAT Act (UStG), following the Act on the Modernisation and Digitisation of the Fight Against Undeclared Work.
This affects goods that:
- Were stored under Section 4(4a) UStG before 1 January 2026, and
- Are removed from storage after 31 December 2025.
For these goods, the existing rules governing removal and the taxation of transactions prior to removal will continue to apply until 31 December 2029.
Why this matters
Businesses using VAT warehousing arrangements will need to carefully track when goods were placed into storage and when they are removed, as different tax treatments may apply depending on timing.
Flat-rate scheme: Reduced average rate for farmers and foresters
For the 2026 calendar year, Germany has updated the average flat-rate percentage under Section 24(1) UStG:
- The applicable average rate is 19%
- This is reduced by the VAT rate in force at the time of the transaction to determine the flat-rate input tax amount
- The resulting percentage must be applied to the taxable amount
- The calculated tax must be reported in line 18 (codes 76/80) of the VAT return form USt 1 A
- Reporting of revenues under EU SAFE instrument.
Why this matters
Any businesses operating under the agricultural flat-rate scheme will need to ensure their systems apply the revised calculation method correctly for 2026
New reporting requirement for EU SAFE instrument revenues
A new reporting line has been introduced for revenues generated under the EU’s “Safety Measures for Europe” (SAFE) instrument.
Entrepreneurs earning income under Article 20(1) of Council Regulation (EU) 2025/1106 must now report this income in:
- Line 22, box 43 of the German VAT return.
Why it matters
This is a new data point for Germany preliminary VAT returns and will require mapping of SAFE-related revenues into the correct reporting field, particularly for organisations receiving EU funding.
Other updates
All remaining changes to the 2026 form are:
- Timing-related updates, or
- Minor editorial and printing corrections.
These do not introduce new reporting obligations, but businesses should still ensure they are using the latest version of the form for the 2026 period.
What businesses should do next
With Germany’s 2026 VAT return form now published, tax teams should:
- Review whether transitional warehousing rules apply to their operations
- Validate flat-rate calculations for agricultural supplies
- Identify any revenues linked to EU SAFE funding
- Update VAT reporting processes and systems in line with the new form layout
Even small form changes can create reporting risk if they aren’t reflected correctly in ERP and tax engines.
Work with indirect tax experts
At Fintua, we help businesses navigate regulatory changes with clarity and confidence. From VAT compliance to multi-jurisdictional tax processes, our experts and technology keep you ahead of change.
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Authors
Lisa Dowling
Specialising in International VAT Compliance solutions, Lisa brings a wealth of knowledge and insight in her dealings with a host of international clients ranging from start-ups through to multinationals. With 21 years VAT experience behind her, Lisa has managed VAT compliance issues and solutions globally for over 11 years. Fintua have 12,000 + corporate clients in over 109 countries and many of these are members of the Fortune 500.
