Supply of goods – Local reverse charge on specific goods
Reverse charge mechanism has been implemented in the German VAT Act [since 01/10/2014] and is applicable under conditions for domestic sales of mobile phones, tablets computers, games console and precious and non-precious metals.
Member State may provide that the person liable for the payment of VAT is the taxable person to whom the supplies of goods or services as listed are made [art. 199 and sub. of the VAT Directive].
Intra-EU supply of goods – Documentary evidence of intra-EU supplies – Entry certificate
Company must hold a “Certificate of Entry” [Gelangensbestätigung] duly completed by the customer proving the effective shipment of the goods outside Germany [measure applicable since 01/10/2013]. In transport cases [situation where the goods are moved with own means of transport, as opposed to dispatch cases], the entry certificate is the only admissible evidence proving the shipment of the goods outside Germany. In dispatch cases [situation where the transport is done by an independent third party, such as a freight forwarder], alternative documents can however still be used as a proof.
The entry certificate may be drawn up in German, English or French. Using another language requires a legally certified translation. You will find here a template of the certificate.
Member States shall exempt the supply of goods dispatched or transported to a destination outside their respective territory but within the Community, by or on behalf of the vendor or the person acquiring the goods, for another taxable person. The exemptions provided for in the VAT Directive shall apply without prejudice to other Community provisions and in accordance with conditions which the Member States shall lay down for the purposes of ensuring the correct and straightforward application of those exemptions and preventing any possible evasion, avoidance or abuse [art. 131 & 138 of the VAT Directive].
Export of goods – Documentation requirement - ATLAS
Companies must hold an electronic statement from “ATLAS” (Automated Tariff and Local Customs Clearance System) to prove the effective export of the goods outside the Community. The Electronic Export Certificate [Ausfuhrvermerk) is considered to be a sufficient proof of export, irrespective of whether the goods are transported or dispatched. Other documentation (e.g. airway bills, freight forwarder certificates, etc.) should however be accepted under exceptional circumstances.
Member States shall exempt the supply of goods dispatched or transported outside the Community by or on behalf of the vendor or by or on behalf of a customer not established within their respective territory. The exemptions provided for in the VAT Directive shall apply without prejudice to other Community provisions and in accordance with conditions which the Member States shall lay down for the purposes of ensuring the correct and straightforward application of those exemptions and of preventing any possible evasion, avoidance or abuse [Art. 131 & 146 of the VAT Directive].
Tax withholding for construction work
The German legislator has established a procedure for safeguarding tax claims in order to curb illegal activities in the construction industry. Under said stipulations, recipients of services [principals] must deduct 15 % from the remuneration for services provided within Germany and pay it to the responsible tax office. The consideration is the remuneration paid for the construction service plus the statutory VAT.
It is however possible, under certain conditions, to waive the deduction obligation if the provider, at the time of payment, presents a valid certificate of exemption.
Conference organizer - New administrative guidelines
The German VAT authorities have published new administrative guidelines clarifying the VAT treatment of services provided by a Congress center. The VAT treatment applicable to trade fairs exhibitions is now also applicable to congresses. In case at least three other services are provided in accordance with a contract in addition to the transfer of use of stand spaces, the services will be considered as a single service taxable where the recipient is established according to general rule.
However, this rule will not apply to hotel accommodation and catering services [which are treated independently and remain taxable in Germany]. The new rules are applicable from 01/06/2015.
The full text of the administrative guideline [in German language] is available on request.
13th Directive refund procedure
Foreign companies not established in the E.U. which acquire goods or services for business purposes in Germany may under certain circumstances obtain the refund of VAT they have been charged through the VAT refund scheme as laid down by 13th Directive. As from 01/07/2016, the application needs to be filed via the online portal of the Federal Central Tax Office. In order to file applications, prior registration for the procedure is required. Transmission of applications will no longer be permissible by post. Be aware that the entire new process [registration and online submission] is available in German only !!!
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