Mehrwertsteuer vs. Umsatzsteuer

Hello Everybody,

Mehrwertsteuer v Umsatzsteuer...

I think I have understood the difference. Mehrwertsteuer is charged to end users, and Umsatzsteuer is charged to businesses. Both are charged at 19%, and both go into box 81 of the tax return.

However, I've noticed some websites display their prices with "inkl. MwSt" and other with " inkl. Ust".

Does it matter whether I display my prices with MwST or Ust? I mostly sell to end users.

Kind Regards
Nicholas

I think MwST is German, and Ust is European. Which means there's no practical difference.

Like asking what's the difference between the EEC, and the EU

Thanks,

I think I'll use Ust then

Nicholas

Just two words for the same thing:
Umsatzsteuer - sales tax
Mehrwertsteuer - Value added tax
People more often use the term "Mehrwertsteuer". That is what I would use on bills or websites.
When talking about the legal situation you often use the term "Umsatzsteuer", because the law is called the "Umsatzsteuergesetz".

Umsatzsteuer is a literally tax on commercial turnover, whereas Mehrwertsteuer is a tax on increased value. Both are essentially correct terms, and as such interchangeable. The difference is that a commercial trader, while paying the full tax on his (German traded) turnover (so really Umsatzsteuer), can actually reclaim the tax already paid (Vorsteuer) on materials he has purchased. The end effect is that the net result is a tax on increased value (Mehrwertsteuer). Only the end consumer (who can't reclaim Vorsteuer) pays the full amount. Clear?

Thanks everybody.

As I'm selling to end users for the most part I will use Mehrwertsteuer on invoices and on my website.

Many thanks
Nicholas

But don't forget to show your Ust-ID on your invoices (as that's what it is...)

Ok.

Finally, on my website I have some text about VAT. There is an English, French and German version of the text, depending on the language chosen by my website visitors. The German reads:

"Umsatzsteuer

Alle Preise verstehen sich inklusive der deutschen Umsatzsteuer von 19 %, und allen Bestellungen wird eine Rechnung mit ausgewiesener Umsatzsteuer beigelegt. Wenn Sie den Kauf für ein umsatzsteuerpflichtiges Unternehmen mit Sitz in der EU (aber außerhalb Deutschland) tätigen, können Sie die Umsatzsteuernummer des Unternehmens an der Kasse angeben. Die Umsatzsteuer wird in diesem Fall vom Preis abgezogen. Hinweis: Die Umsatzsteuernummer wird grundsätzlich vor Versand der Bestellung von uns überprüft."

Should I change Umsatzsteuer to Mehrwertsteuer so it reads:

"Mehrwertsteuer

Alle Preise verstehen sich inklusive der deutschen Mehrwertsteuer von 19 %, und allen Bestellungen wird eine Rechnung mit ausgewiesener Mehrwertsteuer beigelegt. Wenn Sie den Kauf für ein umsatzsteuerpflichtiges Unternehmen mit Sitz in der EU (aber außerhalb Deutschland) tätigen, können Sie die Umsatzsteuernummer des Unternehmens an der Kasse angeben. Die Mehrwertsteuer wird in diesem Fall vom Preis abgezogen. Hinweis: Die Umsatzsteuernummer wird grundsätzlich vor Versand der Bestellung von uns überprüft."

Many thanks for all the help so far, great forum!

Regards
Nicholas

Both texts are fine. The first sentence is for private german consumers, who might be clueless and know only the term "Mehrwertsteuer". The rest of the text is aimed at professionals, who should know what "Umsatzsteuer" is (or be able to look for the correct information). So you might want to keep them visually apart.

I really dont dare to foretell which version would create more confusion.

Don't forget - it's your responsibility to check the credentials of any trader providing you with an intenrational VAT number where you don't apply the tax. If you get an audit the tax authorities will check the tax ID shown. If it is shown to be invalid then YOU will have to pay the tax, despite not having received it from your client. It's a well known trick to enter any old number in these fields (where traders don't validate the number) simply to get cheaper goods

Thanks Everyone,

I do check VAT numbers through the www.europa.eu website, however I don't do any further checks than that.

I'm mainly B2C so I will use Mehrwertsteuer for now. I guess I could write "Mehrwertsteuer / Umsatzsteuer" to avoid any confusion?

There's no confusion in the German world. MwSt is more common and fine to use alone.

Thank you very much.

Just read this thread to get an understanding of Umsatzsteuer. I bought a brand new car for private use in August. I bought the car from a german company that re-imports from other EU countries. When I paid the bill I paid the MwSt. Now nearly one month later I get a letter from the Finanzamt telling me that I should send them a copy of the bill, fill out an 'Umsatzsteuererklärung für die Fahrzeugeinzelbesteuerung' and should duly pay the Umsatzsteuer after it has been calculated. Very strange and a big surprise to me. Obviously I will call them and ask them what the hell is this about but was wondering if this is normal when buying a new car in Germany reimported from another EU member state.

Anyone know? I thought once MwSt was paid then that was that.

Any purchaser of a new vehicle imported from another EU Country must complete an "Umsatzsteuererklärung für die Fahrzeugeinzelbesteuerung" to estimate VAT due. Does the invoice you have from the importer have German VAT on it? Is the address outside Germany? Normally these dealers, usually with non-German addresses sell you and export the vehicle to you without VAT and you complete this form to determine and pay the tax to the German authorities

Thanks for the info. Yes the bill has VAT on it and the company is within Germany. (Registered German Address). I will speak
to that company today me thinks.