Value Added Tax (VAT) EU
July 6, 2009 | 15,00 EUR | answered by Claudia Hochweis
Hello,
we are an advertising agency from the Stuttgart area.
We have purchased and paid for an advertising system from Austria. Without sales tax (Non-taxable turnover according to §3a para. 10 UStG). Both the seller from Austria and we as the buyer have a sales tax ID.
Our question. Do we have to declare the whole thing somewhere, e.g. in our input tax return?
How should we record the "expense" in our accounting? (income/expenditure) invoice.
Dear forum participant,
If the invoice was issued in Austria, it means that no VAT was charged because it is a "catalog service". This means that the tax liability (VAT liability) transfers from Austria to Germany - specifically from the supplier to the customer.
Therefore, you must include this invoice in your VAT return and pay the acquisition VAT to your tax office. If you are entitled to input tax deduction, you can deduct this as acquisition input tax.
It is necessary that BOTH VAT numbers, from the supplier (Austria) and the recipient (you), are included on the invoice.
Otherwise, you may lose the input tax deduction - so please pay attention to that.
Regarding the entry in the income-expenditure account: this is like an expense you made in Germany (so net) because the acquisition input and output tax sum to zero.
Best regards,
Claudia Hochweis, MBA
www.hochweis.at
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