180 day rule on UK tax and contracting in Germany

I've been offered a contract working in Munich. I'll be contracting to a UK company, who in turn have a contract with a big Telco, who in turn are doing a service roll out for a big German company.

So...I've spoken to my accounts and I have a feeling they aren't able to advise me fully.

Ok - the contract is likely to last until the end of the year (although one month notice applies).

Now I'm a bit worried that I can't provide the end service in Germany for more than 6 months without setting myself up as a "freelancer" there.

Second is VAT. I was just going to bill the UK company I have the contract with VAT at 17.5%...the 'end service' I provide though is actually in Germany. I'm going to go flat rate to keep it simple (and probably benefit)

Is that going to be ok? It would love to know that I can contract to a UK company, work in Germany (or any where else for that matter) and just pay tax and everything as though I was in the UK.

Please help...I'm due to start very soon and am uncertain on these points.

Thanks very much Oliver

Where will you be physically performing (providing) the service? If this is in Germany then UK VAT does not apply, but German VAT might, depending on your turnover here, irrespective of your freelance status here.

physically performing the service in Germany (that's what i meant by 'providing the service' - 9 to 5 on site in munich.
I am UK registered for VAT (flat rate) argh...I'm pissed off with my accountants...
should I bill the UK company I contract for VAT at 19% and then pay this to Germany authorities?
That sounds like a sure fire way to get on everyone's radar
I reallllllly don't want to pay German VAT as I benefit from the UK flat rate scheme currently.

The UK Flatrate scheme messes you up when working abroad. Theoretically, you cannot apply UK VAT for services physically provided while based outside of UK. so you have no VAT input to counter the flatrate output. If your turnover in Germany is more than €50,000 in the calendar year (or expected to be) then you are theoretically required to register for VAT here, charge German 19% VAT, even on a UK originated invoice and pay it onto the Germans.

You should apply for formal guidance from the UK VAT authority, at least as far as charging (or not) UK VAT is concerned. While you often get different answers (even for the same question) it's the only way you can be sure to stay clean if there is a problem later. The problem with formal guidance is that you need to be sure you asked the right question in sufficient detail.

Oliver, it might be a good idea to contact Thomas (tax advisor) on your questions - the first consulting is free and seeing that he knows as much about the UK laws as the german tax laws he will have the answers for you :http://www.toytowngermany.com/munich/zitzelsberger_expat_tax_advice.html#contact

He helped us tremendously with all our inquiries

You want to contact one of the many management companies out there like Project Services Beta or ICC.

They sort out all the accountancy side of things and have ingenious schemes which legitimately lower your tax bill.

@lazybum
PSB, and l presume ICC too, are just companies that provide split income schemes. Some income is declared to the taxman and some isn't. It ends up in a nice offshore account.
they are not legal and could land you in alot of trouble if you get found out.