Taxable sales

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Sales can after the German Value Added Tax Act controllable or not controllable. Taxable sales, in turn, can be tax-free or taxable.

The following graphic is used for illustration:

Classification of sales

A taxable turnover can fall under the following circumstances:

  • 1. Paid deliveries or other services (main offense), Section 1 Paragraph 1 No. 1 in conjunction with V. m. Section 3 (1), 6–9 or Section 3a to 3c UStG
  • 2. Free delivery or other service (supplementary facts), Section 1 Paragraph 1 No. 1 in conjunction with V. m. Section 3 Paragraph 1b or Section 3 Paragraph 9a and Section 3f UStG
  • 3. Import from the third country area (main offense), § 1 Abs. 1 Nr. 4 UStG
  • 4. Intra-Community acquisition (main offense), Section 1 Paragraph 1 No. 5 in conjunction with V. m. § 1a, § 1b, § 3d UStG

These are economic processes that are subject to the Value Added Tax Act. Only sales that are carried out in Germany or are treated as carried out in Germany and are treated as such are taxable.

Paid delivery and other services

A service is either:

  • Delivery or
  • other contribution,

the

  • within the company
  • from an entrepreneur (§ 2 UStG)
  • in Germany (§ 3 UStG)
  • must be made for a fee.

If one of these five criteria is missing, the service is not taxable.

The service is the main element of taxation.

In this context, delivery (Section 3 (1) UStG) is understood as the creation of power of disposal over an object. Objects can be material (car, book, pen) or immaterial (electricity, rights, licenses). The participation of at least one supplier and at least one buyer is required for delivery.

Other services are services that are not deliveries (Section 3 (9) UStG). They can consist of doing, tolerating or failing to act or a state.

These include, for example

  • the provision of individual software
  • Services in a bank
  • a visit to the theater or a concert
  • a haircut at the hairdresser's
  • medical treatment etc.

Free delivery and other services

According to § 3 Abs. 1b UStG the following free deliveries are equated with paid delivery:

  • Removal of objects, private removal (Section 3 Paragraph 1b S. 1 No. 1)
Beispiel: Ein Unternehmer entnimmt seinem Unternehmen eine Kühltruhe, die er zuvor erworben hat, für seinen Privathaushalt.
  • Benefits in kind to the staff for their private needs (§ 3 Paragraph 1b S. 1 No. 2)
Beispiel: Der Elektrohändler U schenkt seinem Arbeitnehmer zum 20-jährigen Arbeitsjubiläum einen Kaffeevollautomaten im Wert von 400 Euro.
  • other free gifts (except gifts), the value of which is <10 euros (§ 3 Paragraph 1b S. 1 No. 3)
Beispiel: Ein Unternehmer verteilt Kugelschreiber an Kunden.

According to Section 3 (9a) UStG, the following free other services are equated with other paid services:

  • Private use of business objects (Section 3 (9a) No. 1 UStG)
Beispiel: Ein Unternehmer nutzt einen betrieblichen Pkw auch für private Zwecke. Die Unternehmerische Nutzung liegt bei 80 %. 
Es handelt sich also um ein gemischt genutztes Fahrzeug.
  • other free of charge other services (Section 3 Paragraph 9a No. 2 UStG)
Beispiel: Der Meisterfriseur schneidet seinen Mitarbeitern kostenlos die Haare.

Import from third country territory

When goods are imported into Germany (including the Austrian areas of Jungholz and Mittelberg in Kleinwalsertal), the country of destination principle applies. This means that the goods are subject to sales tax in the country to which they are delivered.

Whether this import takes place in Germany depends on Section 3 (8) UStG.

Intra-Community acquisition

An intra-community acquisition (igE) according to § 1a UStG exists if a delivery is made from one member state to another member state (= domestic). The supplier must be an entrepreneur who carries out the delivery against payment within the framework of his company. The same applies to the purchaser.

However, there is an exception when purchasing new vehicles (§ 1b UStG). Here, buyers who are private individuals are treated like entrepreneurs. This is to ensure that the delivery is taxed in the country of destination. The country of destination principle therefore always applies to the intra-community acquisition of new vehicles by private individuals.

The following vehicles are affected by this regulation:

  • New vehicle: <6,000 km or <6 months old
  • Watercraft:> 7.5 m in length, <3 months old or <100 operating hours
  • Aircraft: <3 months old or <40 operating hours

Whether the intra-community acquisition takes place in Germany depends on § 3d UStG (place of intra-community acquisition).

Individual evidence

  1. ↑ See Bornhofen M., Bornhofen MC, Steuerlehre 1, Springer Gabler, Wiesbaden, (2014), p. 132.
  2. ↑ See Stobbe T., Taxes compact, Verlag Wissenschaft & Praxis, Sternenfels, (2012), p. 52.
  3. ↑ See § 1 UStG, Paragraph 1, No. 1.
  4. ↑ See Hahn V., Kortschak H.-P., Textbook Value Added Tax, NWB Verlag, Herne, (2013), p. 22.
  5. ↑ See Bornhofen M., Bornhofen MC, Steuerlehre 1, Springer Gabler Verlag, Wiesbaden, (2014), p. 133 ff.
  6. ↑ See Bornhofen M., Bornhofen MC, Steuerlehre 1, Springer Gabler Verlag, Wiesbaden, (2014), p. 140.
  7. ↑ See Bornhofen M., Bornhofen MC, Steuerlehre 1, Springer Gabler Verlag, Wiesbaden, (2014), p. 170 ff.
  8. ↑ See Bornhofen M., Bornhofen MC, Steuerlehre 1, Springer Gabler Verlag, Wiesbaden, (2014), p. 177 ff.
  9. ↑ See Bornhofen M., Bornhofen MC, Steuerlehre 1, Springer Gabler Verlag, Wiesbaden, (2014), p. 188 f.
  10. ↑ See Hahn V., Kortschak H.-P., Textbook Value Added Tax, NWB Verlag, Herne, (2013), p. 85.
  11. ↑ See Reiss W., Value Added Tax Law, Verlag Alpmann and Schmidt, Münster, (2009), p. 134.
  12. ↑ Customs online - intra-community acquisition of new vehicles. Retrieved March 30, 2017 .
  13. ↑ See Bornhofen M., Bornhofen MC, Steuerlehre 1, Springer Gabler Verlag, Wiesbaden, (2014), p. 204.