How do I correctly pay private individuals as a company?
April 3, 2021 | 25,00 EUR | answered by Steuerberater Bernd Thomas
How do I correctly pay individuals residing in Germany and in EU countries for services?
What documents do I need from the "service providers"?
I organize E-Sports tournaments and need commentators for this. I have to pay these commentators for their service, which is providing commentary for the livestream.
I am a sole proprietorship, but the commentators do not have a registered business, so they are private individuals.
Do the commentators need to issue me an invoice, or another document?
If yes, how should this invoice look like and what information should it contain?
Dear questioner,
I am happy to answer your inquiry based on the information provided in a preliminary consultation on frag-einen.com. The response is based on the information you have provided. Missing or incorrect information can affect the legal outcome.
In principle, these are entrepreneurs within the meaning of VAT law, even if they describe themselves and feel like private individuals.
However, this is irrelevant for you in case of doubt.
You should request an invoice from the commentators without VAT, for foreign ones you should subject the service to the reverse charge procedure.
You should also know the identity of your contractors.
Best regards,
Bernd Thomas
Tax advisor
Information according to DL-InfoV: Tax advisor Dipl.-Kaufmann (FH) Bernd Thomas, Tax advisor, Neustadtswall 85, 28199 Bremen, member of the Hanseatic Chamber of Tax Advisors Bremen, registration number 111705, professional liability insurance with R+V Allgemeine Versicherung AG, Mittlerer Pfad 24, 70499 Stuttgart, insurance sum: 250,000 euros for each individual claim; annual maximum benefit: 1,000,000 euros (for all damages in one insurance year); the professional regulations of §§ 3, 3a, 32, 43 Steuerberatungsgesetz apply (regulations can be viewed at: http://www.gesetze-im-internet.de/stberg)
