GERMANY

Historic Data

The Value Added Tax Law (Umsatzsteuergesetz) came in to effect on 1 January 1998

Tax Authorities Address

VAT Rates

Standard Rate: 16%

Applies to all suppplies of goods and services not qualifying for reduced rate or zero rating.

Reduced rate: 7%

Applies mainly to foodstuffs and taxi fares for distances under 50 kms.

VAT refunds to foreign business

Germany grants VAT refunds to all EU registered buessinesses and to non-EU businesses on a reciprocity basis.

Germany currently refunds to the following non-EU countries:

Andorra

Antigua and Barbuda

Bahamas

Bahrain

BermudasVirgin islands

Camen Islands

Estonia

Gibraltar

Grenada

Greenland

Hong Kong

Iran

Iceland

Israel

Jamaica

Japan Canada Qatar

Korea

Kuwait

Lebanon

Liberia

Libya

Liechtenstein

Macao

Maldives

Monaco

Norway

Oman

Solomon Islands

Saint Vncent

San Marino

Saudi Arabia

Switzerland

Swaziland

Vatican

United Arab Emirates

USA

Please note: This list is subject to change, and if in doubt, the Authorities should be contacted.

Requirements for the application (documents)

• UST1 claim form (must be filed in German and signed by the applicant.
• Original invoices/customs documents
• Tax certificate (valid for 1 year only)
• LOA if fiscal representative has been appointed.

Claim periods

4 quarterley claims or 1 annual claim

Minimum amount

For EU Countries:

Quarterley = 200 Euro

Yearly = 25 Euro

For non-EU Countries

Quarterley = 500 Euro

Yearly = 250 Euro

Main claimable items

Hotels & meals ( invoices have to be made out in the name and address of the claimant)

Entertainment (refundable up to 80% - entertainment details required)

Car Rental

Fuel (only for EU countries)

Taxis

Public Transport

Professional fees

Conference/Trade show

Training courses/seminars

Non-claimable items

Goods and services for non-business purposes

Goods and service used for activities that are tax-exempt under German vAT law

Expenses which are not deductible under income tax law

Fuel to non-EU claimants

Deadline

The application for refund must be received by the competent fiscal Authority six months from the end of the calendar year in which the tax was incurred. Th is deadline is final and cannot be extended.

New invoice requirements for Germany
Invoices issued after the 31.12.2003 have to contain the following additional information

supplier's tax number ( Steuernummer ) or supplier's VAT identification number ( Umsatzsteuer-Identifikationsnummer )
The tax number is the number the company is provided with when the company has registered for VAT the VAT identification number is a separate number a company can apply for. This number starts with the letters DE followed by a nine digit number.

The administrative guidelines issued in this respect mention that the above applies to invoices issued up to the 1.07.2004. The guidelines do not contain any information for the time after that date. We will include here the new guidelines once they are issued.