Invoicing of French illustrator to German association.
June 17, 2014 | 25,00 EUR | answered by Peter Lipp
We are a registered non-profit organization and have commissioned illustrations digitally from an illustrator (she has low turnover, in Germany she would fall under the small business regulation). Now we have questions regarding invoicing, so that we do not face an unexpected sales tax demand afterwards. She is French. Would it be sufficient if she provides us with her invoice for the illustration including the transfer of rights with a note on the small business regulation/without VAT? Do we have to deduct sales tax for the service afterwards in Germany? Thank you for your response. Warm regards.
Dear seeker of advice,
the small business regulation of § 19 UStG is only applicable to domestic entrepreneurs. In your case, there may be a service according to § 13b UStG. The other service provided by a foreign entrepreneur to a domestic entrepreneur, or a legal entity with a VAT ID, is carried out where the recipient is based, see § 3a UStG. Therefore, in the domestic territory. You must therefore withhold the VAT on the invoice and remit it to the tax office. If you do not have a business operation or a VAT identification number, there is nothing to be done, as the service will be provided in France.
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