Pedestrians wear masks on a street in Cologne, Germany. Bloomberg
Pedestrians wear masks on a street in Cologne, Germany. Bloomberg
Pedestrians wear masks on a street in Cologne, Germany. Bloomberg
Pedestrians wear masks on a street in Cologne, Germany. Bloomberg

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Europe

Germany eases restrictions for UK and India travellers

UK has been removed from Berlin’s highest risk category of 'virus variant areas'

Soraya Ebrahimi
Soraya Ebrahimi

July 05, 2021

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Germany is easing strict restrictions on travel from Britain, Portugal and some other countries, which were imposed because of increases in the Delta variant of the coronavirus.

Germany’s national disease control centre, the Robert Koch Institute, said late on Monday that Britain, Portugal, Russia, India and Nepal would be removed from its highest risk category of “virus variant areas”, effective from Wednesday.

They will be moved into the second-highest category of “high-incidence areas".

The UK had been in the top risk category since May 23, and was joined last Tuesday by Russia and Portugal, one of Germany’s partners in the EU.

Airlines are mainly restricted to flying German citizens and residents from “virus variant areas". Those who arrive must spend 14 days in quarantine at home.

People arriving from “high incidence areas” can avoid quarantine if they can prove that they are fully vaccinated or have recovered from Covid-19.

Others can cut short a mandatory, 10-day quarantine by testing negative after five days. Transport is no longer restricted.

Officials have said the listings would be reviewed as the proportion of infections caused by the Delta variant in Germany rises.

Although overall case numbers are very low, more than half of new cases are now believed to be caused by Delta, which was first identified in India.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Updated: July 06, 2021, 8:11 AM
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