VAT
The value added tax in Germany is levied on the production of goods and services in the countries All business entities are subject to payment of tax on the execution of production processes in Germany's current VAT rate in Germany 19, applied from 1 January 2007 in Germany, a reduced tax of 7 are collected from the sale of specific items such as food, magazines and books the VAT rate is set according to the parameters EU value added tax VAT in Germany actually earns high revenue for the country in the form of revenue tax.
VAT is generally known as Umsatzsteuer Germany Previously, the value added tax was called Mehrwertsteuer This term is still prevalent in some areas of the country.
Business entities in Germany add VAT before the price of the product and service gross commodity prices in Germany include VAT charges 19 companies submit monthly reports and tax are required to pay taxes on a monthly, quarterly or annual reports also include the calculation of tax for the quarter following the period of tax payments depends on the company's annual sales amount of the tax is paid in advance at the office tax most major producers are required to submit their advance on a monthly basis.
The value added tax payable by business entities in Germany include the taxes paid by companies to the purchase of goods and services that is balanced returns VAT This is known as the input VAT or Vorsteuerabzug Germany in most cases, business entities are paying more taxes than they receive in the later stages, the authorities return the excess tax paid as soon as calculations are complete this situation is common in the phase start where more than its revenues from the sale of company expenses.
Some products and services are exempted from payment of tax on value added in Germany Some of them are listed below.
The services provided by professional groups like doctors.
Cultural services offered by public theaters, museums and zoos to the public.
The institutions offering value-added services such as general or vocational training.
No VAT is charged on intra-Community supplies, such as selling goods to another business organization among members of the European Union However, the beneficiary contractor is subject to the acquisition tax payable authorities This is similar to the input VAT and is refundable.
Some small businesses are expecting a lower figure of annual sales to 50 000 this year, or less than 17500 euros turnover for the previous year are exempted from payment of tax on value added in Germany but these small businesses are not allowed to deduct the input tax by billing.
Small and medium sized enterprises in Germany can also opt for taxation of real revenue or Istbesteuerung This allows companies to pay after receiving their payments This method is preferred by small businesses to imputed tax payments that may cause cash flow problems the ceiling taxation of actual revenue in the states of eastern Germany is € 500,000 until the end of 2009, while for the rest of the country, the ceiling is 250,000 EUR.
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(VAT) in Germany Economy Watch, value, Germany.