Taxes in Germany, Taxation in Germany, Taxes system in Germany
Tax on goods and services
2nd Object of taxation
3rd Tax exemptions
4th Tax liability
5th Tax Rates
6th Facilities for small businesses
German tax (Umsatzsteuer), also known as tax
value added is regulated by the Law on Turnover Tax
(Umsatzsteuergesetz) Regulation of implementing the Law on
turnover tax (Umsatzsteuer-Durchführungsverordnung) and
Regulation exempting from sales tax on imports
(Einfuhrumsatzsteuer-Befreiungsverordnung). Due to the form of transfer
tax burden on the consumer and end user belongs to
2nd Subject to taxation
German Law on tax on goods and services does not use the
The taxation taxation pojêciem activities as it is
introduced in the Polish law, but applies the concept of taxable turnover
Pursuant to the provisions of the Act are subject to the following forms of taxation
obtained on the market:
1st Delivery and other services, which carries an entrepreneur in the country (Germany)
in return for payment, within prowadzanego company. Not subject
turnover tax, which is managed on the basis of legal or s
administrative action has been completed, or under the legal provisions
is considered to be executed.
2nd Imports of goods into Germany from areas of third countries and the Austrian
Jungholz areas and Mittelberg (import turnover tax)
3rd Purchase of goods and services in the country with the collection of duty under
economic relations with EU countries.
In addition, the law also mentions other cases of acquired market
taxable, such as:
- The turnover in the free ports are treated as the turnover in the country
taxable as a general rule,
- The turnover in the operation, and the goods are traded in
customs warehouses or free ports,
- Intra-EU acquisition of a new vehicle by a citizen of the State of the Union,
- Other services provided to others.
The Act lists the activities treated as sales, which include
- Get the goods out of the company,
- Free przekazanie goods by a trader to the purpose
- Transfer of free stuff every time, except for low-gifts
values and the samples associated with conducting business.
3rd Tax exemptions
Product of the exemptions contained in the Act. Overall in this directory
contained more than 30 of these exemptions, which include the
- The turnover of the inland sea and air,
- The supply of gold to central banks,
- Intermediation in the export and shipping, and air. Relief
question in this regard can not use a travel agency offering or
arranging for services to travelers whose turnover derived from agency
- The supply of new cars for specific groups (such as NATO, the mission
- The turnover tax on the taxable property
- The turnover achieved on the basis of the law on lotteries and betting,
- The turnover achieved by the Law on tax on insurance
- The supply of human organs, blood,
- Health services carried out, inter alia, by doctors, dentists,
psychotherapists, physiotherapists, etc.
- Education and for educational purposes as well as performed by schools
private or other centers of training,
- The turnover generated by universities from the research activities with some
Tax refund in accordance with the provisions of the Act shall at the request of the taxpayer and
concerns the procurement of items for the church or the military or
public utility companies.
In addition, tax exemption subject to such activities as:
- Imports of selected goods from EU countries,
- Import items that are exempt from sales tax
4th Tax liability
The Act provides for the possibility of different tax obligations. In
For service delivery and other services tax liability arises
at the time of delivery, implementation services and the tax calculation by
fixed payment. In the case of exports, within the expiry of the notification
German VAT is a tax on an annual basis, relates to the year
The calculation of tax due to the taxpayer, however, depending on
size of the business can be done in two ways.
Generally accepted principle applies, which says that to calculate tax
income shall be payable. The exception here are small businesses, which
are required pursuant to submit an application to the Tax Office, of the adoption
for calculating income tax faktycznie received, and due nie. Principle
This applies to those companies which:
- Reached in the previous year turnover of not more than 125 000 or
- Are exempt from the obligation to keep records of their close and regular
pursuant to the provisions of Tax Ordinance,
- Carry out activities and achieve revenue from professional services.
The competent tax office shall issue a decision allowing for the taxation
income actually received, and not payable. In other cases,
apply the general rule.
Taxpayers have an obligation to set appropriate print registration
electronically (from 01.01.2005) and the application for tax liability
within 10 days of the expiry of the period which includes the registration. Themselves
are also required to declare and calculate the amount of tax withholding
tax. At the request of the taxpayer the tax office may dispense with the required
electronic means to avoid more serious problems.
Declaring advances take place in terms of quarterly or monthly.
To declare the withholding tax in monthly terms are required
taxpayers who had in the previous year a tax of more than
6 136 Euro. The first declaration of the advances in the following year takes place in
By February 10. If the tax for the preceding year did not exceed 512 Euros
the tax office at the request of the taxpayer may exempt him from the obligation to pay
advances and the initial declaration.
Where the taxpayer for the previous year obtained a refund of VAT
height of more than 6 136 Euro, the taxpayer has the right to choose period
(Quarter or month) to declare and pay an initial deposit.
At the end of the calendar year taxpayers are required within
one month to donate an annual statement of turnover tax and
independently calculate the tax due. Payment of tax occurs
one month after a decision by the tax office.
5th Tax Rates
In the German Turnover Tax applies basic rate of EUR
16%. In addition, for certain commodity groups reduced rate applies
amounting to 7%.
For example, the rate of 7% would be subject to the following services:
- Animal husbandry
- Services provided by theaters, choirs, orchestras as well as organizing
concerts and theater performances by other actors,
- Services provided by companies for the purposes set out in the Act
other public purposes, or the church.
Also in relation to the goods listed in
Annex to the Act lists the goods covered by the reduced rate of 7%
(More than 54 groups of goods) which include for example:
- Live animals associated with household item
- Coffee, tea and spices,
- Sugar and confectionery,
- Water, except for drinking water, spring
- Work of art.
6th Facilities for small businesses
German law provides facilities for small entrepreneurs,
Krych that the rules stated that if the country settled in a small trader
achieves revenue for the previous year amounting to 17 500 euros and this year
the market will not exceed 50 000 Euro then there is no obligation to pay tax
turnover (release subjective). Taxpayers shall not have the right to
refund of input VAT paid in the accounts.
These companies do not have the right to bill with tax
VAT due. An entrepreneur may opt for the tax exemption and
pay VAT on general terms.
Entrepreneurs who have achieved in the previous year revenue of more than 17 500
Euro shall be obliged to pay tax on the principles of VAT and generic
show it in the displayed accounts. The same rules apply to small
entrepreneurs who have not reached the previous year of income
17 500 Euro, but the following year crossed the border 50 000 Euro.
The Act provides further facilitate the calculation of tax due for
small businesses through the use of so-called. average rates
(Durchschnittssätze), the form of lump sum taxation. This applies to those
entrepreneurs who are not required to keep records of tax.
Those taxpayers are required to submit an application to the tax office
beginning of each fiscal year. A decision on taxation in the form
the average rate valid until end of the year. For each
next year should be submitted separate proposals.
Average rates included as an annex to the Regulation and are
- Baking industry - gained 5.4% market
- Printing - 6.4% of turnover derived
- Hairdressing - 4.5% of turnover
- Car repair - 9.1% from the market
- Flowers (flowers and plants) - the market gained 5.7%
- Drugstores - the market gained 10.9%
- Milk, milk products, fats and eggs - 6.4% of turnover derived
- Textile articles - the market gained 12.3%
- Architects - the market gained 1.9%
- Lawyers for the patent - the market gained 1.7%
- Lawyers and notaries - the market gained 1.5%
- Chimney sweeps - gained 1.6% market
- Business consulting, testing balance - 1.7% obtained on the market.
Currently, income earned by the State VAT are divided into
federal budget and budgets of the Länder (federal states), which in
2002 had a total 46.52% of the VAT. In previous years
this share was
- In 1995 - 44%
- From 1996 to 1999 - 49.5%
- In 2000 - 49.75%)
The share of the federal budget in 2002 fell to 49.6% (years
previous was: 1995 - 56%, from 1996 to 1999 - 50.5% in 2000