The Property Acquisition Tax Act (GrEStG) provides for obligations to notify the property acquisition to the tax office. The incorrect or missing notification has, among other things, effects on the statute of limitations of the Real Estate Transfer Tax Act. We explain why and what the advertisement must look like.

1. meaning of display of land acquisition

1.1. Purpose of notification of land acquisition

The purpose of the statutory reporting obligations is the complete and complete information of the responsible tax offices about all transactions that may be relevant for the real estate transfer tax. With the notification of the real estate acquisition, the participants fulfill a legal obligation. However, the fulfilment of the notification obligations is also a prerequisite for the start of the fixing period.

In the case of several display obligations, a display obligation does not apply because the process must also be displayed by someone else. Rather, the legislator assumes that individual legal processes are reported to the tax office several times and by different persons.

In the case of multiple reporting obligations, however, not every violation of the individual reporting obligation can be sanctioned if the relevant transaction has been duly reported to the competent tax office at least once. The decisive factor is that the tax office has actually become aware of the transaction and can set the real estate transfer tax. A display is required for this, but also sufficient.

1.2. Relationship to general reporting obligations of the Tax Code

The general provisions of the tax code presuppose further obligations of cooperation and information of the parties involved (§§ 90 ff. These are not affected by the special reporting obligations under the Property Transfer Tax Act. Rather, both regulations exist independently side by side. Taxpayers are obliged to correct incorrect or incomplete declarations immediately (§ 153 AO). This also applies to advertisements under the Property Acquisition Tax Act.

2. notification of real estate acquisition under the Real Estate Transfer Tax Act

2.1. Content of notification requirements

The Property Acquisition Tax Act regulates some reporting obligations that affect different people. The notification obligations relate to legal processes pursuant to § 1 (3) no. 1 and 2 GrEStG, i.e. the conclusion of a purchase contract for a property or the discontinuation if no such commitment transaction has preceded it.

According to § 19 (1) sentence 1 number and 5 GrEStG, taxpayers and according to § 18 (1) sentence 1 GrEStG notaries must file a notification. Such notifications shall be made within two weeks of the date of the notification. This applies even if the transaction is exempt from taxation. The advertisements of taxpayers are their tax returns.

The content of the ads results from § 20 GrEStG. Among other things, § 20

paragraph 1 numbers 2 and 3 GrEStG the designation of the land according to land register, land registry, street and house number as well as the size of the land and in the case of built-up land the type of development. These requirements apply to several plots of land for each plot of land. The requirement finally determines the content of the advertisement. The tax office cannot require further information.

2.2. Indication requirement for separate determination

The rule is that the taxpayer acquires one or more properties in the district of a tax office. The competent tax office then immediately issues a tax notice on the real estate transfer tax, the determination of the tax bases forming an independent part of the tax notice. In this case, no separate determination of the tax bases is made.

In certain exceptional cases, however, the Property Transfer Tax Act provides for a separate determination of the tax bases. Thereafter, a separate determination shall in principle be made for the following acquisitions: