File a complaint under the EU Dispute Resolution Directive
Description
The procedure under the EU Dispute Settlement Directive and the EU Double Taxation Agreement Dispute Settlement Act (EU-DTA-SBG) implementing this Directive supplements existing mutual agreement and arbitration procedures under the double taxation agreements and the EU Arbitration Convention to eliminate taxation that violates these agreements and conventions, in particular to eliminate double taxation.
For example, you can file a complaint if you believe that your taxation is affected by a dispute between
- - Germany and
- - one or
- - several other Member States of the European Union (EU)
on the interpretation and application of an agreement or convention on the elimination of double taxation.
When submitting your complaint, you must provide the following information:
- Name
- Address
- Tax identification number
- Data
- of EU Member States affected by the complaint
- on the tax periods concerned by the application
- the relevant facts and circumstances of your case
- about any appeals or legal proceedings you have brought
- on any mutual agreement or arbitration proceedings already requested under other legal bases
- Reference to the applicable national rules and agreements or conventions
- Opinion on the reasons for which a dispute exists
- Commitment
- the authorities of the EU Member States concerned
- Respond fully and promptly to all reasonable requests
- provide all requested documents and evidence upon request
- comply with the provisions terminating all ongoing proceedings under other legal bases
The mutual agreement and arbitration proceedings under the EU Dispute Settlement Directive and existing mutual agreement and arbitration procedures under the double taxation agreements and the EU Arbitration Convention cannot be conducted simultaneously. You must therefore opt for one of the proceedings before filing the appeal.
As a private individual or owner of a small or medium-sized enterprise, if you are resident in Germany, you submit your complaint informally in writing to the Federal Central Tax Office (BZSt).
As a large company or company belonging to a large group of companies, you must submit the application both to the BZSt and to the competent authorities of the EU Member States concerned.
Hints
- If you are not resident in Germany, you must lodge the complaint with the competent authority of your EU Member State in accordance with the EU Dispute Resolution Directive.
- The procedure under the EU Dispute Resolution Directive and the EU DTA SBG is only available for taxation periods from 2018 onwards. However, the competent authorities may also agree to apply it to earlier tax periods.
A complaint under the EU Dispute Resolution Directive can be submitted by:
- natural and legal persons who:
- are resident in Germany or an EU Member State concerned, and
- take the view that their taxation is affected by a dispute between
- Germany and
- one or
- several other EU countries
on the interpretation and application of an agreement or convention on the elimination of double taxation.
When applying, you must submit:
- Copies
- of all supporting documents and evidence relating to the facts and circumstances relevant to the case
- supporting documents relating to appeals or legal proceedings initiated
- relevant court decisions
- of tax assessments
- of tax audit reports
- Supporting documents relating to all mutual agreement or arbitration proceedings already requested and relevant
- for the Advisory Committee, if you request it and subsequently withdraw the complaint, or if the Advisory Committee confirms the rejection of your complaint and the Federal Central Tax Office (BZSt) and the competent authorities of the Member States concerned agree that you should bear the costs: the expenses of the independent or designated persons corresponding to the average of the reimbursement for high-ranking officials of the Member States concerned, and the fee for the independent or designated persons, up to a maximum of EUR 1000 per person per day for each day of the meeting of the Advisory Committee
- Submission of the complaint: within 3 years of notification of the measure that led to a dispute
- Withdrawal of the complaint: at any time (informally in writing)
- Submission of evidence of termination of ongoing appeal or legal proceedings, together with a commitment that no appeals will be lodged against the correct implementation of the agreement: within 60 days of notification of the agreement in the mutual agreement procedure
- for the acknowledgement of receipt of the complaint: 2 months
- Notification of receipt of the complaint to all competent authorities of the relevant EU Member States: 2 months
- Decision on admission or rejection of the appeal: 6 months
- if further information is requested within 3 months of receipt of the complaint, the period shall commence upon receipt of the requested information
- if the Federal Central Tax Office (BZSt) has not taken a decision within 6 months, then the complaint is admissible by the BZSt
- Agreement and notification of the result: within 2 years from the last required admission of the complaint
- an extension of the deadline for notification of the result by 1 year is justifiably possible
- an extension of the deadline for notification of the result by 1 year is justifiably possible
- Contradiction
- Tax court action
- Remedies under foreign law
- Forms: no
- Online procedure possible: no
- Written form required: yes
- personal appearance: no
If you are resident in Germany and as
- Private person or
- small or
- medium-sized enterprise
lodge a complaint: You must submit your complaint informally in writing to the Federal Central Tax Office (BZSt).
- Compile all the necessary documentation.
- Send the documents together with an informal and signed application by post to the BZSt.
- The BZSt will acknowledge receipt of your complaint.
- After examining your complaint, the BZSt will decide whether to admit or reject your complaint.
- The BZSt notifies all competent authorities of the relevant EU Member States of receipt of your complaint. You do not have to take action yourself.
If you are resident in Germany and
- are a large company, or
- Your company belongs to a large group of companies,
then you must submit the application both to the BZSt and to the competent authorities of the EU Member States concerned.
- Compile all the necessary documentation.
- Send the documents together with an informal and signed application by post to the BZSt and the competent authorities of the EU Member States concerned.
- The BZSt and the competent authorities of the EU Member States concerned acknowledge receipt of your complaint.
- After examining your complaint, the BZSt will decide whether to admit or reject your complaint.
If your complaint is admissible, the BZSt will endeavour to resolve the dispute in a mutual agreement procedure with the authorities of the EU Member States. You will then receive a notification of the agreement. The agreement becomes binding if you agree to it and terminate all further proceedings, for example on appeals.
If the authorities of the EU Member States cannot reach an agreement on how to resolve the dispute, you can request the establishment of an Advisory Committee. The Advisory Committee shall deliver an opinion on how the dispute should be resolved. The competent authorities may take a decision derogating from the opinion of the Advisory Committee. However, if they do not reach agreement on the resolution of the dispute, they shall be bound by the opinion of the Advisory Committee when taking the decision. Competent authorities may also set up an Alternative Dispute Resolution Committee instead of an Advisory Committee.
Federal Ministry of Finance (BMF)
The text was automatically translated based on the German content.
