VAT on claims by a UG of employee inventor rights
March 8, 2020 | 25,00 EUR | answered by Steuerberater Knut Christiansen
Is a claimed employee inventor remuneration paid to a UG subject to sales tax? The purpose of the UG is the exploitation and enforcement of employee inventor rights. If the claim is successful, there will be a one-time payment from a former employer to the UG. The shareholders of this UG are the former employees.
Hello,
basically, it depends on the VAT assessment whether the payment is made due to a provision of services (money for services). If this is the case, the service would be subject to VAT. In the negotiation, it should be agreed that the payment should be made plus VAT. Since the employer usually has input tax deduction, meaning they can reclaim the VAT from the tax office, the VAT would be neutral for them.
Kind regards,
Knut Christiansen
Tax consultant
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