VAT issue in Germany
Thread poster: Jonathan MacKerron

Jonathan MacKerron  Identity Verified
Member (2005)
German to English
+ ...
Jul 7, 2011

Sorry if this question has been asked before, but my searches here in the forum have not been fruitful.
I personally am generally required to charge VAT for my bills issued to German contractors. Now, I have just done a small job for a translator friend in Germany, who is no longer required to charge VAT for his own work.
Am I required to charge him the additional 19% VAT over an above the agreed price, or am I exempted from having to charge VAT, since he himself does not charge it?
TIA for your input.
JM


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Andy Lemminger  Identity Verified
Canada
Local time: 23:04
Member (2002)
English to German
Charge Jul 7, 2011

Hi Jonathan,

You have to charge MwSt to everyone. For you it doesn't matter if someone is exempted or not.
Your friend will deduct the MwSt as an expense for income tax purposes and you treat it just as usual.

Best regards

Andy
www.interlations.com


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Jonathan MacKerron  Identity Verified
Member (2005)
German to English
+ ...
TOPIC STARTER
Thanks Jul 7, 2011

Andy Lemminger wrote:

Hi Jonathan,

You have to charge MwSt to everyone. For you it doesn't matter if someone is exempted or not.
Your friend will deduct the MwSt as an expense for income tax purposes and you treat it just as usual.

Best regards

Andy
www.interlations.com


Hi Andy,
Just as I suspected - thanks for the confirmation und Gruss aus Berlin!
Jonathan


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James Heppe-Smith  Identity Verified
Germany
Local time: 07:04
Member (2010)
German to English

Moderator of this forum
Yes, sad but true Jul 7, 2011

Hi Jonathan,

If you are VAT registered, then for all sales in Germany (with some very rare exceptions) you are required to add MwSt at 19% to invoices for both B2B and B2C sales.

If your colleague is VAT registered he can claim the input tax back.

There are some exceptions for tax free status entities in Germany, but it doesn't sound like this is one of those.

I found a useful aide memoire for German VAT on one of the threads here, my accountant confirmed that it was accurate. I will see if I can dig out the reference, but please don't hold your breath - it was some months ago.

I have also found my accountant (if you have one), the local IHK and also (strangely) the local Finanzamt helpful in setting me straight on tax issues.

HTH. And will post again if I can find the document or the link.

James


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Steffen Walter  Identity Verified
Germany
Local time: 07:04
Member (2002)
English to German
+ ...
Link/VAT resource Jul 8, 2011

James Heppe-Smith wrote:
...
I found a useful aide memoire for German VAT on one of the threads here, my accountant confirmed that it was accurate. I will see if I can dig out the reference, but please don't hold your breath - it was some months ago.
...
HTH. And will post again if I can find the document or the link.

James


Hi James,

I think you meant http://www.triacom.de/archive/triacom-info.2010-05.de.pdf (which is very helpful indeed).

Steffen


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Jonathan MacKerron  Identity Verified
Member (2005)
German to English
+ ...
TOPIC STARTER
Thanks to all for your input Jul 8, 2011

I will charge the 19% and he will claim the VAT against his income.

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James Heppe-Smith  Identity Verified
Germany
Local time: 07:04
Member (2010)
German to English

Moderator of this forum
That's it! Jul 8, 2011

Steffen Walter wrote:



I think you meant http://www.triacom.de/archive/triacom-info.2010-05.de.pdf (which is very helpful indeed).



Yes, that's the one - saved me dragging through my downloaded files folder! Thanks! I have now printed it out and filed it in the "useful info" folder

James


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VAT issue in Germany

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