German companies struggle with 10,407 reporting requirements

In Germany businesses have to comply with 10,407 reporting requirements. The requirement which causes most costs is that of keeping invoices according to the law on value-added tax. This requirement alone causes costs of 6.2 billion Euros each year. There are other costs caused by bureaucracy to the value of more than 40 billion Euros each year. Almost 53% of these costs are the consequence of EU legislation. The above figures were mentioned by the German government in a report on actions to cut bureaucracy.

In total the above-mentioned report by the German goverment lists costs amounting to about 47.6 billion Euros each year for the German economy. Of this sum only 22.5 billion Euros are the consequence of German legislation while 25.1 billion are caused by guidelines and laws passed by the European Union.

In total there are 10,407 reporting requirements haunting German businesses. In its report the government promised to identify and cut unnecessary costs. The target set is a cut by 25% by the end of the year 2011. It may well be possible that many entrepreneurs have serious doubts about the success of such intentions looking at what has been achieved so far in this respect. GERMAN

Matomo