Germany: Updated NACE Codes
The German Federal Central Tax Office (Bundeszentralamt für Steuern – BZSt) has implemented updated NACE activity codes in the form used by domestic organisations applying for input tax refunds in other EU member states. The update relates specifically to the input tax refund procedure and applies to organisations submitting claims to the BZSt. The updated codes are now incorporated into the official application form. Organisations are encouraged to verify that their activity classification aligns with the updated NACE codes when filing. Incorrect or outdated codes may result in the rejection of refund applications.
Key changes and requirements
The updated NACE codes apply only in the context of the input tax refund procedure. Organisations submitting applications to recover input tax incurred in other EU countries must ensure that the NACE code included in their filing accurately reflects their operational activity. The correct classification is necessary for review by the BZSt and in some cases by foreign tax authorities that process refund claims.
Refunds relating to input tax incurred in non‑EU countries must continue to be submitted directly to the relevant foreign authorities. The update does not introduce new corporate governance or reporting requirements. Separate from the NACE update, monetary thresholds for classifying enterprise sizes under Section 267 of the German Commercial Code were amended in 2024, affecting financial statement and audit obligations. Updated balance sheet, turnover and employee thresholds apply when determining whether an organisation is classified as micro, small, medium or large.
How can we help?
Computershare’s Global Entity Compliance team of professionals can support you to ensure your company is compliant with the legislation. This new requirement reiterates the important need for good statutory compliance and our team would be glad to discuss how we can work with you to meet all requirements.
Contact
Please contact your dedicated Computershare Relationship Manager or send an email to #GLCGSGECNetworkManagement@computershare.com for more information about how Computershare may assist you in responding to these new requirements.
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