VAT in Germany. What are the taxes in Germany? VAT refund
Germany is the richest countryThe European Union. Every year it attracts a large number of investors. One of the main reasons for Germany's investment attractiveness is its tax system. Taking into account what taxes to pay in Germany, as well as all their features, investors from all over the world are deploying their business activities on the territory of the Federal Republic of Germany. There are three types of taxes that are available in Germany:
- taxes on income;
- taxes are not transactions;
- taxes on real estate.
Taxes on transactions
This category of German taxes deserves much attention. There are two types of taxes on transactions. The first type is a value-added tax, and the second is a property tax.
VAT in Germany can not be called neither low nor high. On the territory of Europe there are those countries in which value added tax is lower than in Germany, and those in which its rate exceeds German.
Tax rates for the purchase of property -differentiated. Their average size ranges from four to five percent on average, depending on the territory. In Berlin, the highest tax rate - at a rate of six percent.
Value added tax
VAT in Germany, like in most countries of the European Union, involves three rates:
The basic rate is 19 percent, while the lower one is 7 percent.
At zero rate, the export tax is calculatedto value added. In those cases where the seller in the invoice and the invoice indicates the value of the goods, taking into account the value-added tax, the buyer can effect a VAT refund upon return to his country. Also, physicians practicing in the territory of the Federal Republic of Germany and insurance agents are exempt from value-added taxes.
The reduced VAT rate in Germany is applied forgoods of the first vital necessity, food products (except for drinks), which are imported into the customs territory of Germany. In addition, 7% of the total value of the goods is paid by the hotel and catering establishments. The base rate of value-added tax is applied in all other cases. VAT in Germany on real estate is also charged at a nineteen-percent rate.
The process of paying indirect taxes, which isvalue added tax, and their size in Germany, as in other countries of the European Union, are regulated by the norms of the European Union, adopted in Directive 112 of 2006.
In Germany, there is a limited andunlimited duty to pay income tax. The first category includes income from sources in Germany, and to the second - incomes earned all over the world. To taxpayers with limited liabilities are residents of Germany, which are non-profit organizations, state-owned institutions, as well as foreign enterprises without permanent representation on the territory of the Federal Republic of Germany.
Since 2008, the tax rate has significantly decreased- from 25 to 15 percent. Now the effective rate is about 30 percent, since the taxpayer is forced to pay another five and a half percent to the state budget, as well as municipal taxes, the amount of which in different lands can be from fourteen to seventeen percent.
How is the value added tax paid in the Federal Republic of Germany
This type of indirect tax must be paid monthly. The seller must transfer the necessary amount of money to the budget on the same day that he sent the invoice to the buyer.
After the enterprise has been entered in the register,it must within two years send preliminary declarations concerning the size of the value-added tax to the tax authorities of the country. The state has the right to extend the deadline for submission of declarations for thirty days. Also, the company is obliged to provide all data on the payment of value added tax at the end of each year.
Imported Value Added Tax
There are companies that are legallycan not pay VAT in Germany. The amount of VAT in Germany for imports depends on the applied rate. At the time when the imported goods crossed the German border, it can not be returned. The buyer can pick up the goods only after he has paid all the necessary customs payments:
- value added tax;
- customs duty;
- excise tax (if necessary).
Calculation of import VAT
The amount of VAT in Germany for imports depends on the customs value of the goods, as well as all duties and excise duty that was paid at the border. Calculate the VAT can be due to the following formula:
RVAT= (ТС + П + А) / 100 * СVAT,Where
- RVAT- amount of value added tax;
- TS - customs value of the goods;
- P - the amount of customs duties;
- A - the amount of excise;
- FROMVAT- The rate of value added tax.
Example of calculation of import value-added tax
The price of one unit of production is 100 euros. A total of 50 thousand units were imported. The fee is 0.15% of the total cost of all products. The goods are not excisable.
Depending on what rate is applied, the amount of VAT can be calculated in two ways.
At the base rate, the VAT amount in Germany is 951 thousand 425 euros:
RVAT= (100 * 50 000 + 100 * 50 000 * 0.0015) * 0.19 = 951 425 euros.
If the reduced rate applies to the goods, the amount of the value added tax will be 350 thousand 525 euros:
RVAT= (100 * 50 000 + 100 * 50 000 * 0.0015) * 0.07 = 350 525 euros.
Export value-added tax
Value added tax when exporting goodsfrom the country in 99% of cases is carried out at application of zero interest rate of the tax. However, there are cases when the buyer is obliged to pay the tax. For example, when buying goods through an online auction.
There is an opportunity to agree with the seller that he sold the goods cheaper, - without VAT. But this will have to be done bypassing the auction. In this situation, the buyer assumes all the risks of the transaction.
VAT in Germany for export is calculated by the same formula as the value added tax for the import of products.
A non-resident of Germany has the right to return money,spent on the payment of value added tax. For the return of money is the seller of the goods. In order to reduce the number of problems, sellers in Germany stopped adding value-added tax to the total value of the goods they sold. Thus, the buyer does not necessarily return the money. He just pays less immediately. But there is one exception - the purchase of a vehicle in Germany.
If there is a need to return the tax, we must remember that this can be done by a non-resident of the European Union or an EU citizen if he has an internal VAT number.
In addition, mention should be made of the limitationsfor duty-free amount of money that can be received as a refund of value-added tax. If you have to return a lot of money, then the buyer must pay customs duties.
This type of tax is paid both by residents and non-residents of Germany. All of them pay in addition to the tax itself a contribution of 5.5 percent of its amount.
Residents of the Federal Republic of Germany are considered to be natural persons who have real estate on the territory of the state or reside in the country for six months or longer.
The rate can be:
But the size of the tax can differ depending on the subject to which it is applied (single payer or married couple).
If the tax is paid by one person, then the thresholdThe amounts are 13 thousand 469 euros, 52 thousand 881 euros and 250 thousand 730 euros for tax rates of 14 percent, 23.97 percent and 42 percent respectively. If the income exceeds the mark of 250 thousand 730 euros, then a 45 percent rate is applied. The income to 8 thousand 354 euros is not taxed. For married couples, threshold amounts are twice as high.
The effective rate for dividends for residents is 26.36 percent, but it should be taken into account that the rate is 25 percent, and another 5.5 percent is a solidary contribution.
The rate of 26.38 percent is applied directly to non-residents of Germany. A zero tax rate can also be provided. In addition, 40 percent of the tax paid to non-residents is reimbursed.
The royalty of non-residents is taxed at a rate of 15.83 percent. Royalties for residents of the Federal Republic of Germany are not taxed.