Intra-community supply
January 5, 2015 | 30,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
We are a GmbH, a painting company. We would like to purchase wine in Italy, which will be delivered to our office in Germany. For this purpose, we have applied for and received a consumption tax number from customs.
1. Question: How should the delivery be booked in our SKR 03 accounting system? Please provide the accounts and booking entries. Where does the delivery appear in the VAT return? What tax code?
2. Question: We would like to give the wine as gifts to other businesses and private individuals, but only as presents, i.e. individual bottles. The average cost of a bottle is between 10.00 and 20.00 euros. Does this need to be recorded separately, and if so, in what form?
3. Question: The managing director himself would like to purchase the wine from his company. Can the GmbH issue an invoice to the managing director - a private individual - without VAT? How should this be booked? Thank you for your assistance and kind regards, on behalf of M. Förster.
Dear questioner,
Thank you for your inquiry, which I am happy to answer taking into account your effort and the rules of this platform.
Please note that my explanation is based on the situation presented, and that adding, omitting, changing information, or the ambiguity of information can change the tax result. Please also note that this does not replace individual comprehensive advice.
According to § 1 a para. 1 of the Value Added Tax Act (UStG), the delivery of wine by the Italian entrepreneur constitutes an intra-Community acquisition for you. In the VAT return, this intra-Community acquisition should be declared under code 89 (Taxable intra-Community acquisitions at the tax rate of 19%). You must also calculate the VAT of 19% (= acquisition tax) on the value of the goods. You can then claim this as input tax. Enter the acquisition tax under code 61 (Input tax amounts from intra-Community acquisitions of goods (§ 15 para. 1 sentence 1 no. 3 UStG)) in your VAT return.
Since you are giving the wine to your business partners (i.e. not employees) for business purposes and the value of the goods does not exceed the threshold of 35.00 EUR per business partner and year, you should book this transaction either to account 4630 (Gifts deductible without § 37b EStG) or account 4631 (Gifts deductible with § 37b EStG). If the threshold is exceeded, then book the transaction to either account 4635 (Gifts not deductible without § 37b EStG) or account 4636 (Gifts not deductible with § 37b EStG). If the threshold is both exceeded and not exceeded for individual business partners, you must allocate the value of the goods accordingly to accounts 4630/4635 or 4631/4636.
In addition to the threshold, the booking also depends on whether you, as the donor, assume the income tax of the gifted business partner according to § 37b of the Income Tax Act (EStG). The gift of wine is generally subject to income tax for your business partner. Under § 37b, you can have the gifts to your business partners taxed at a flat rate of 30% (plus solidarity surcharge and church tax). The flat-rate taxed gifts will then not be considered in the income calculation of the recipient. You must inform the recipient of the tax assumption and declare and transfer the flat-rate tax to the tax office as part of your income tax return.
The accounting entries are as follows:
4630 to 1200 (Bank) Value of the wine or
4631 to 1200 (Bank) Value of the wine or
4635 to 1200 (Bank) Value of the wine or
4636 to 1200 (Bank) Value of the wine
Expenses for gifts must be recorded separately from other operating expenses. They can only be considered in profit determination if they are specifically recorded. Failure to comply with the special recording requirement will result in gifts under 35 EUR not being recognized as operating expenses. The obligation to make special records is fulfilled if these expenses are continuously, promptly, and, in the case of balance sheet preparers, booked on separate accounts within the accounting or, for cash basis accounting, recorded separately from other operating expenses from the beginning. The name of the recipient must be visible from the booking or document. For large invoices with many items, a separate gifts list should be made, including the names of recipients, the type, and amount of the gift.
If the GmbH sells part of the wine to the managing director, this constitutes a taxable supply of goods (§ 1 para. 1 no. 1 UStG). The invoice to the managing director must therefore include 19% VAT. This transaction can be booked to account 8640 (Other revenue operationally and regularly 19% VAT).
The accounting entry is as follows:
1200 (Bank) to 8640 Value of the wine
Best regards,
Dipl.-Kfm. Frank-Olaf Illiges
Tax advisor
Am Wieksbach 55
33378 Rheda-Wiedenbrück
Phone: 05242/4055666
Fax: 05242/4055677
Email: office@illiges-steuerberatung.de
Website: www.illiges-steuerberatung.de
