Stairs from Poland
September 22, 2021 | 35,00 EUR | answered by Steuerberater Knut Christiansen
Hello,
I would like to buy a staircase from a Polish company. The stair builder mentioned that if I have a business registered in the house where the staircase will be installed, he will issue a net invoice and I will not have to pay taxes. This is why every second staircase is bought from him. Otherwise, we would have to pay the Polish tax, which is 23%. Since I was planning to register a business anyway, this would be perfect. Now the question is: How does this work? Do I declare it as an expense in my tax return? Shouldn't he also issue a net invoice to me as a private individual, and I take it to the German tax office and pay German tax instead of Polish tax? Does the Polish company report to the German tax office, "so and so" bought a staircase from me?
Thank you in advance!
Good day,
Thank you for using frag-einen.com!
Basically, § 13b para. 5 UStG regulates the reverse charge mechanism when a foreign contractor provides a work delivery to a German entrepreneur. This also applies when the work delivery is for non-business purposes (e.g. a private house) (§ 13b para. 5 sentence 6 UStG).
As a business owner, you would then have to pay VAT in Germany. You would need to declare the turnover in the VAT return. If the staircase is for the business part of the property, you could deduct the German VAT as input tax. If the staircase is for the private part, you would have to pay the 19% VAT.
If you purchase the staircase as a non-business individual (not registering a business), then the Polish contractor must register in Germany for VAT purposes if they also install it for you. In this case, § 3a para. 3 UStG applies, making the place of supply Germany. They would then have to issue you an invoice with German VAT.
There is no notification from the Polish authorities.
I hope this answers your question, feel free to ask any further questions.
I would like to remind you that this forum cannot replace a detailed and personal tax consultation, but is primarily intended to provide an initial tax assessment. Adding or omitting relevant information could lead to a different legal assessment of your issue.
Best regards,
Knut Christiansen
Tax advisor
