VAT / sales tax
February 24, 2011 | 30,00 EUR | answered by Matthias Wander
Dear Sir or Madam,
we are a Czech LLC (s.r.o.) based in the Czech Republic, but we conduct our purchasing activities throughout Europe, including in Germany. Now our question:
What happens if we purchase goods in Germany, store them in Germany (i.e. do not export them to the Czech Republic) and then sell them to a German customer? Do we have to pay VAT to the distributor in this case? Which VAT rate do we charge our customers, 19% DE or 20% CZ? Where do we need to remit the VAT, in DE or CZ? Do we need a German tax number? If so, how can we obtain one without having a presence in Germany?
We would appreciate a prompt response.
Sincerely,
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your activities within the scope of an initial consultation.
Since the entire economic transaction takes place in Germany, it is taxable and subject to taxation in Germany. This means that you must issue an invoice to your customer with German VAT. Your supplier will also provide you with an invoice including German VAT, which you can deduct as input tax.
In this case, you must submit VAT pre-registrations in Germany. For this, you need a German tax number, which you can apply for at the tax office Chemnitz-Süd. You will also submit all pre-registrations there.
I hope this gives you a first overview.
Best regards,
Wander
Tax consultant
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