Higher tax burden from 2022 for flat-rate farmers

Due to a reduction in the average sales tax rate, flat-rate farmers can expect a slightly higher tax burden from 2022.

The average VAT rate for simplified taxation of flat-rate agricultural and forestry businesses will fall from 10.7 to 9.5 % from 2022. According to estimates by the German government, this will result in additional burdens for the affected farms of 80 million euros in 2022 and 95 million euros from 2023. The current average rate of 10.7 % would no longer be permissible from the new year because it would violate the EU directive on the common VAT system.