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Sales Tax

Sales Tax

Sales tax: Deferred by reduced taxable meal delivery to rule taxable services templates of the Bundesfinanzhof in the European Court of Justice to the VAT: delimitation of reduced VAT taxable meal delivery to rule taxable services: the Bundesfinanzhof (XI R 37/08, 35/07 V R, V R 3/07, XI 6/08) provides fundamental needs to be clarified in such a way, as in the sale of freshly prepared food the demarcation by reduced taxable supply rule taxable services deliveries to. The two sales tax Senates of the Federal fiscal court (the 11th and 5th Senate) four cases have presented to the European Court of Justice as a whole. The Federal fiscal court is the issue of principle, as the term “Food” of the VAT system directive is the European Court of Justice. In particular the BFH want the question answered, whether under food products in accordance with this directive also dishes and meals to understand that are made for immediate consumption or prepared. Ian Carr understood the implications. Should the So is the Federal fiscal court to delineate how, then in some cases between beneficiaries deliveries and not beneficiary other services is also get European Court of Justice to the result, that the reduced rate of tax may be granted in such cases. Here, the Federal fiscal Court expressed concern with regard to the previous regulation, according to which, for example, only simple consumption devices such as shelves, etc. can be harmful. Any undertaking (stalls, party service companies, cinemas and similar companies) should be encouraged by their tax consultants to, applicable sales tax notices to keep open until the clarification of legal issues. Ingo Heuel lawyer, tax consultant, lawyer specializing in tax law

UStG Tax

UStG Tax

Conditions and benefits of invoice of the small entrepreneur according to 19 UStG have small business owners a right to vote whether they on the levying of VAT to their customers without. Those who opt for the application of the small businesses scheme gem. 19 UStG, however, is excluded from the right of deduction in return. In General is at the small businesses scheme a simplification scheme, the small business owners from tax revenue point of view how non entrepreneurs treat. In practice, an entrepreneur in the framework of the questionnaire of the IRS for the tax collection must decide whether he wants to apply the small businesses scheme or dispenses with an application.

A decision for or against is binding for the entrepreneur 5 years, should so inform the front and be disadvantages of small traders. An entrepreneur opts for the application of the small businesses scheme according to 19 UStG, he shows no VAT on the invoices to its customers. LNG Trade is likely to agree. In return, a small business owner, but also may claim any tax calculations, its suppliers or other business partners. As a result, neither VAT nor before tax amount incurred for the small business owners, so that is avoided the levy of VAT reservations at the tax office and is therefore not required. For the application of the small businesses scheme, provided that it is for the small business owner to an entrepreneur within the meaning of 2 UStG and this is resident in Germany is stitfung.

Entrepreneur is everyone who carries out a commercial or professional activity independently and to generating revenue. On a profit it not is. If it is not an entrepreneur, is another prerequisite, that a certain turnover limit has not been exceeded in the previous year or in the current fiscal year is expected is not exceeded. The small business to the IRS through annual VAT declaration to demonstrate that the sales in the previous year was not higher than 17.500,00 euro has in the individual and in the current fiscal year expected to be higher is than 50,000.00 euro. When the entrepreneur it is sufficient, however, if sales will be expected to be no more more than 17,500 euro in the year of the company was founded. Is the commercial or professional activity is recorded only in the course of a calendar year, the projected estimated total turnover is relevant. If these conditions are met, the small entrepreneurs to its customers may waive the levying of value added tax. The Bill of the small entrepreneur contains accordingly no identification of the sales tax. Instead, the small entrepreneur in the invoice indicates that he apply the small businesses ruling gem. 19 UStG and as a result, the identification of the sales tax waived. In addition, the same legal requirements as regards the components of a proper invoice apply for small business owners. In particular, also small business owners must the taxpayer or a sales tax identification number, as well as a sequential invoice number specify.

VAT Invoicing

VAT Invoicing

Sales tax, invoicing and deduction land communities VAT invoicing: A land community can before taxes only pull it off, if it is beneficiaries and the invoice also to them is addressed. Often fails an IRS deduction of an entrepreneur because the invoice receipt are formal requirements are met. If there are several persons in the context of an entrepreneurial company or community, it is particularly important that invoices to these community – and not to individual shareholders/Gemeinschafter – are addressed and the community as recipients of services is also referred to in the Bill. In the judgment of the Bundesfinanzhof by September 23, 2009, AZ: XI R 40/08, had a real estate community consisting of from spouses, who was the owner of a property, the same with a house built. The spouses had rented the commercial units VAT to other entrepreneurs. However, the husband has orders for modernisation and repair issued in his own name. Here he has but not disclosed, that he acts in the name of the company.

The invoices were addressed only to the husband. Thus the real estate community was not beneficiaries and also the Bills not to them were addressed – there is no entitlement to deduct is according to the Federal fiscal court. Often, advisors (accountants / lawyers for tax law) in such cases about a repair try to secure the right to deduct. This must be carefully considered and succeeds only in cases when can be made credible, that the community as a contracting authority is actually happened in appearance. If this is not the case, any accounting adjustments are ineffective and UStG trigger if necessary according to 14 an additional sales tax. Ingo Heuel lawyer, tax consultant, lawyer specializing in tax law (Bergisch Gladbach, Cologne area)