Vat Unfortunately this specification of service has not yet been completely translated.

General

Although VAT, also known as VAT, is calculated by the paying traders and paid to the tax office, it is economically borne by the customers (final consumers) by paying VAT as part of the price to the employers.

However, if the recipient (customer) is himself an entrepreneur, he can claim VAT as a so-called input tax from the tax office if he has purchased the goods or services charged with VAT for business purposes. With the deduction of input tax, the sales tax is then "repaid" to him. This ensures that sales tax is charged to final consumption, but not to corporate profits. The refund of foreign value added tax is carried out in a special procedure (so-called pre-tax remuneration procedure).

Taxable transactions

The transaction is taxed unless tax exemption applies. Sales include:

  • Deliveries (e.g. sales of goods) and other services (e.g. consultancy services, repair work, rental and leasing) for remuneration and equal saninterest levies (removal or use of the company's goods for non-corporate purposes, free donation of goods, e.g. to staff for their private use or use of goods for the private needs of staff, free provision of other services to non-corporate purposes),
  • intra-Community acquisitions (e.g. goods withdrawals from other EU Member States) and
  • the importation of goods.

Exemptions are only possible under certain strict conditions, in some cases separate certificates are required.

Tax calculation

The general tax rate (= standard tax rate) is 19 percent and the reduced rate is 7 percent. The value added tax is calculated by applying the respective tax rate to the so-called tax base. The basis of assessment is, in principle, remuneration. That is all that constitutes the value of the consideration which the affordable trader receives or is to receive from the recipient of the service or from a recipient other than the recipient of the service, including that which is directly linked to the price of those transactions. related subsidies, but less the vat legally due on that service.

Tax debtors

The debtor of vat is, in principle, the entrepreneur. However, VAT is only levied if the trader is not a so-called small business owner.

However, for certain transactions received, the recipient owes the sales tax that is payable. This is the case, for example, in the case of domestically received taxable works or other services of a trader established abroad or in the case of taxable acquisition of a property. Small business owners must also pay attention to the so-called tax liability of the recipient of the benefit.

Tax declarations and advance payments

The trader must, as a rule, submit advance VAT declarations, usually by electronic means, in which he is required to calculate the VAT himself for the pre-registration period. The calculated tax must be declared as a prepayment up to the 10th day after the end of the pre-registration period and must be paid to the tax office (due date). At the end of each calendar year, a vat year declaration must in principle be sent by 31.07. of the following year, also as a rule by electronic means.

The federal and state tax administrations have developed a procedure for the electronic transmission of tax return data (ELSTER) to the tax authorities. The free ElsterForm software is available for the year of VAT declaration and vat advance declaration. You can also submit them via the portal "My ELSTER" at www.elster.de.

The advance declaration of VAT, the annual VAT declaration, the application for a permanent extension and the notification of the special advance payment must be transmitted with authentication. This requires registration via the portal "My ELSTER" can be accessed under www.elster.de. The required certificate is available free of charge.

Tax generation

In principle, the value added tax arises at the end of the pre-notification period during which the service is executed (so-called debit tax). For down payments before the performance of the service, however, the tax is already incurred in the pre-registration period of the collectitable. Under certain conditions, the tax office may allow the trader to calculate the tax on the basis of the fees he has collected (so-called actual taxation). This is possible, inter alia, if the total turnover in the previous calendar year did not exceed EUR 500,000.

Invoice issuance and record-keeping obligations

In the case of services to other contractors, the entrepreneur is obliged to issue an invoice to their undertakings or to legal persons within six months of the performance of the service. This obligation also exists if taxable deliveries of works or other services in connection with immovable property are made to a private person (non-entrepreneur). There are shortened deadlines for the issue of invoices for intra-Community supplies or intra-Community services in the inter-business sector (B2B).

In addition, the trader is obliged to record the tax and the basis of its calculation in order to determine the tax.

The free ElsterForm software is available for the electronic transmission of VAT returns and VAT advance declarations. You can also submit these via "My ELSTER" ( www.elster.de ).

Related Links

  • mein ELSTER

If the tax office waives your request for electronic transmission of vat advance declarations or the year-on-year VAT declarations, you will receive the paper forms necessary for the preparation of the registrations in all Hessian tax offices.

If you, as an entrepreneur, wish to sell goods via an online marketplace, you will need a certificate of vat registration from the competent tax office (Section 22f UStG) from 1 January 2019, which you must submit to the operator of the online marketplace.

Related Links

  • Antrag auf Erteilung einer Bescheinigung über die umsatzsteuerliche Erfassung

Hints

Does a domestic contractor provide telecommunications, radio and television services or other services provided electronically (e.g. downloading software or providing music, films and games) to non-entrepreneurs in other EU countries, a special tax procedure must be observed at the Federal Central Tax Office (so-called mini-one-stop shop).

Further information on the other VAT regulations can be found in the tax guide for start-ups of the Hessian Ministry of Finance.

Further information on ELSTER can be found on the website of the Hessian Ministry of Finance.

  • Steuerwegweiser für Existenzgründer
  • ELSTER
  • Informationsblatt zu umsatzsteuerrechtlichen Pflichten für nicht in der Europäischen Union ansässige Unternehmer

Related Links

  • Umsatzsteuergesetz (UStG)

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Last update or date of publication
10.01.2020