Do I need to pay VAT in Germany?
Thread poster: cklanguage
cklanguage
United Kingdom
Mar 10, 2016

A client in Germany that I am working for has asked if I have to pay VAT? I tried to find out, but there seems to be a lot of information. There seem to be different options. I am registered as self employed in the UK.

Thank you


Direct link Reply with quote
 
Alexander Somin  Identity Verified
Germany
Local time: 03:15
Member (2014)
English to Russian
+ ...
Not for client in Germany Mar 11, 2016

Inside the EU, you do not need to pay VAT when selling to a business client. You need to register for your VAT ID in the UK and put it on your invoice together with the VAT ID of your EU client (to not to pay VAT).

Direct link Reply with quote
 

Angela Rimmer  Identity Verified
United Kingdom
Local time: 02:15
Member (2014)
German to English
+ ...
If you are not VAT-registered... Mar 11, 2016

With respect, I think Alexander is not correct here.

Based on your questions I am assuming that you are not VAT-registered in the UK. In that case, you are not part of the VAT system at all and are considered VAT exempt.

Tell your client that since the threshold in the UK is so high, you are considered VAT exempt and do not pay or collect VAT.

If you are VAT-registered then you would not charge your client in Germany VAT, but you do have to have both your VAT number and theirs on your invoices and the invoice should state something like "Reverse charge 0%" where the VAT would normally be.


Direct link Reply with quote
 

Georgi Kovachev  Identity Verified
Bulgaria
Local time: 04:15
Member (2010)
English to Bulgarian
+ ...
You'd better check with your local tax authorities Mar 11, 2016

Since this matter is subject to EU regulation, please check with your local tax authorities.

According to the Bulgarian VAT Act, which is regulated by the EU legislation, all businesses should register in accordance with the said act prior to delivering any goods or services to EU-registered entities, regardless of the fact they have not reached the VAT threshold applied locally. There is a special provision in this respect, under which I obtained my VAT ID number. This supposedly applies to all countries within the EU.

As per my knowledge, in 2010 the fine (for not being registered under the VAT Act while delivering goods or services within the EU) was about EUR 1,500 in Bulgaria.


Direct link Reply with quote
 

Tom in London
United Kingdom
Local time: 02:15
Member (2008)
Italian to English
No Mar 11, 2016

cklanguage wrote:

A client in Germany that I am working for has asked if I have to pay VAT? I tried to find out, but there seems to be a lot of information. There seem to be different options. I am registered as self employed in the UK.

Thank you


Assuming you are self-employed and resident for tax purposes *ONLY* in the UK, and are not VAT-registered (which is not obligatory if your turnover is below £82,000) then the answer to your client's question is a resounding NO.

I would add that you are only responsible for complying with the tax rules in your own country and not those of any other country.

You should make sure you are 100% compliant with UK tax rules. Start here:

https://www.gov.uk/working-for-yourself/overview



[Edited at 2016-03-11 07:54 GMT]


Direct link Reply with quote
 

Kelly Neudorfer  Identity Verified
Germany
Local time: 03:15
German to English
Check with your local tax agency Mar 11, 2016

I live and work in Germany but get regular business from an agency in the UK. German tax law requires me to request a German VAT ID (even though I usually don't need one for business within Germany because my turnover is below the set limit) and put it on my invoice along with a note about the reverse charge mechanism, meaning that the UK agency is responsible for taking care of the VAT. So if I only worked with clients in Germany and outside the EU I wouldn't have to have a VAT ID number, but since I have EU clients I had to request one. I had thought that was an EU-wide rule, but I have no knowledge of tax systems other than in Germany and the US, so take that with a grain of salt.
The advice given above to check with your local tax agency is sound. You don't want to end up in a sticky tax situation.


Direct link Reply with quote
 

Jack Doughty  Identity Verified
United Kingdom
Local time: 02:15
Member (2000)
Russian to English
+ ...
German agency's advice on requirements Mar 11, 2016

A German agency for which I did some work about two years ago advised me to make out my invoice to include the following:

VAT reversed
VAT registration not required under UK law. Social security number xxxxxxxxxxxx
My ref:
xx.xx.20xx for (name, adr., VAT №)


Direct link Reply with quote
 


To report site rules violations or get help, contact a site moderator:


You can also contact site staff by submitting a support request »

Do I need to pay VAT in Germany?

Advanced search







WordFinder
The words you want Anywhere, Anytime

WordFinder is the market's fastest and easiest way of finding the right word, term, translation or synonym in one or more dictionaries. In our assortment you can choose among more than 120 dictionaries in 15 languages from leading publishers.

More info »
TM-Town
Manage your TMs and Terms ... and boost your translation business

Are you ready for something fresh in the industry? TM-Town is a unique new site for you -- the freelance translator -- to store, manage and share translation memories (TMs) and glossaries...and potentially meet new clients on the basis of your prior work.

More info »



Forums
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search