Source: https://www.consultinghouse.eu/services/finance-controlling/fiscal-representation-services.html
Timestamp: 2017-06-24 20:59:03
Document Index: 302793262

Matched Legal Cases: ['Art. 5', 'Art. 4', 'Art. 4', 'Art. 15', 'Art. 1', 'Art. 3', 'Art. 5', 'Art. 4', 'Art. 6']

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Fiscal representation servicesSince the beginning of 1997, it has been possible for companies domiciled abroad to arrange for a fiscal representative for VAT purposes in Germany, to a limited extent ("minor fiscal representative"). This fiscal representative system pursuant to Arts. 22a-22e Value Added Tax Act (UStG) is of particular interest for companies from third countries (i.e. non-EU states) which import goods into Germany via the Port of Hamburg, and subsequently deliver them onward (VAT-free) to other EU states outside of Germany. That saves these companies, which do not have their own offices in Germany, the administrative effort of VAT registration in Germany, and thus the associated declaration obligations. The use of a fiscal representative is voluntary in Germany, unlike the situation in other EU countries. So a foreign company can either have itself represented for VAT purposes in Germany by a fiscal representative, or it can itself register for VAT purposes, and fulfill the tax duties arising for VAT purposes itself. This information sheet is available in German and in English translation.
Circular of the Federal Finance Ministry of 11 May 1999, may in particular include the following:Tax-free imports, not followed directly by intra-Community delivery (Art. 5 para. 1 No. 3 UStG)Tax-free intra-Community acquisitions, which are not followed directly by intra-Community delivery (Art. 4b No. 4 UStG)Tax-free cross-border transportation of objects within the meaning of Art. 4 No. 3 UStG, where the company does not acquire deliveries or services for which it can deduct input tax under Art. 15 UStG.What are the practical situations where a fiscal representative is relevant?
A supplier in the USA agrees with a company in Hungary on delivery of goods "free domicile, customs and taxes paid". The supplier imports the goods into Germany via the Port of Hamburg. In this case the American supplier fulfils in Germany the definition of import (Art. 1 para. 1 No. 4 in conjunction with Art. 3 para. 8 UStG). This import is free of tax pursuant to Art. 5 para. 1 No. 3 UStG if the supplier declares intra-Community supply to Austria following import. In order to claim exemption from tax, the American supplier must have its own VAT registration in Germany and must fulfil various declaration obligations vis-à-vis the German tax authorities (VAT Annual Declaration, Summary Report, if applicable Intrastat Declaration).Here again, this administrative effort can be avoided by use of a fiscal representative.
The same thing applies if a company F domiciled in France agrees with a customer B domiciled in Belgium on delivery "free Port of Hamburg". After delivery, the Belgian customer B then exports the goods to Japan (third country) for its customer J. B acquires the goods free of tax by way of intra-Community acquisition (Art. 4b No. 4 UStG) and then exports them free of tax (Art. 6 UStG) with the obligation for submission of an annual VAT Declaration and if applicable Intrastat Declaration.Learn more about us E-mail this article to a colleague Contact us