Taxes in Germany


Taxes in Germany, Taxation in Germany, Taxes system in Germany

Tax on goods and services 1st General 2nd Object of taxation 3rd Tax exemptions 4th Tax liability 5th Tax Rates 6th Facilities for small businesses 1st General 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 indirect taxes. 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 (Umsatz.) 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 inter alia: - Get the goods out of the company, - Free przekazanie goods by a trader to the purpose private - 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 include: - 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 taxable - The supply of new cars for specific groups (such as NATO, the mission diplomatic) - 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 (Versicherungsteuergesetz) - 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 exemptions. 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 import. 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 tax. German VAT is a tax on an annual basis, relates to the year calendar. 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: - Crops, - 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 German tariff - Cereal - 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 example: For crafts - Baking industry - gained 5.4% market - Printing - 6.4% of turnover derived - Hairdressing - 4.5% of turnover - Car repair - 9.1% from the market retail - 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% Liberal professions - 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 50.25%).





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