IBU

Consol

TAX: UK VAT, German MWST etc.

http://www.berklix.com/~jhs/txt/vat.html

by a Computer Consultant NOT a tax consultant

Introduction & Disclaimer at bottom of page.

DRAFT

Notes & View

1. Enumerated so you can please Tell Me which point number you are commenting on.
2. If biller in Germany has a MWST no, must quote it to payer in Germany & charge MWST. (IT)
3. If biller in Germany has a MWST no, & payer in England has a VAT no, biller must quote the number, but not charge MWST. Question: does the biller need to obtain, store, mark on bill, etc the VAT number of the payer ? (ie in case payer fails to pay own tax authorities ? ) (IT)
4. German doctors are exempt inside Germany ! ie a German doctor being billed from UK doesn't want to pay VAT. Don't know that this is resolved yet. (PS)
5. Germans have 2 MWST numbers, a national & international. (PS) International gets dealt with somewhere in Saarland (IT)
6. An English company just with non UK suppliers & customers was told way back, no need to file for VAT, or charge or be charged VAT or MWST (JS)
7. Umsatz Steuer is a subset of MWST (MK < Acc.) Einfuhr Steuer is a subset of MWST (MK < Acc.)
8. If you have a VAT number (which I don't have, not sure if that's connected to a GMBH in .de), your not supposed to have to pay VAT in the other country. If I buy something from say UK and I had a Umsatz Steuer-number, the seller shouldn't put the VAT on the bill as far as I know. (PT)
9. MWST 16% to 19% as of January 1, 2007 (SS < StB)
10. UK VAT is 17.5% at Oct 2006

11. A UK view

    • If a firm in Germany were to buy goods from UK and sell to Spain and have the goods shipped straight to a private customer in Spain, that would be 'triangulation' and you would have to register with the Spanish VAT authorities. Common EU rules. Fine for large companies but a pain for small ones.

12. A UK view

    • Not sure, but you might find it easier if your customers are VAT registered companies in their own countries, not individuals: eg Shipping goods from Italy to UK seems viable without VAT, but when UK firm imports them they (as responsible for the import) become liable to the UK authorities to pay 'Acquisition tax' (VAT by another name).
13. A View From Germany to be moved / added later, time permitting
14. More Views & Notes. to be moved / added later, time permitting

15. Introduction: Why This Page Exists & What Its Aim Is

    • I sometimes ask & get asked various tax scenarios over a beer, eg by computer consultant colleagues, at MECC etc.
    • My notes are here to help others & so others can please Correct me, or expand on things etc.
    • I'm aiming for pedestrian notes on how to do minimum paperwork & legally. Not aiming to spend more time to save more tax with complex or questionable schemes.
    • I hate doing paper work, & tax bores me, I'd always prefer to spend more time working, earning more money, (& paying more tax), but enjoying doing what I do best Computer Consultancy, rather than spending extra time trying to optimise adventurous tax structures, & perhaps incurring higher tax adviser fees, bank charges, & company fees etc.
    • The aim is to note how to survive in Europe, both as an individual consultant & as a small company, in Britain, Germany (& other European countries), legally doing Computer Consultancy & Service, trying to cope with how & when to bill & tax Inland, European & World wide customers, & which incoming expenses bills should be paid with VAT/ MWST.
    • Don't blame me if its wrong, I'm a computer consultant, not a tax consultant.
    • Go pay some professional or ask some tax office, if you want sound advice.
    • I don't pretend this is up to date, correct, or ever was correct, it merely have been correct once, or not. It might set you thinking what to check yourself though.
    • This are just email/ phone snippets from various people generally in smallish businesses, also trying Not to be tax experts, but to spend their time on business, not { working as unpaid tax collectors for government or as tax accountants }.
    • Please correct me if anything is wrong.