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  1. German VAT Threshold & liability...?

    Hello,   I'm Freelance, a resident of Germany, I'm liable for German Income tax. But until Nov 2019 all my work was B2B providing a service to UK clients, in locations all around the world but nothing in Germany. In Nov 2019 I started working for a German client on overseas projects (all outside of the EU). So this work is B2B providing a service overseas for a German company.   I've previously been resident in the UK, I was not registered there for VAT since the threshold is uk£85,000... My worldwide turnover never exceeded this and still doesn't.    So far in Germany I have not registered for VAT. But in 2019 the last contract for this German client my total revenue from them exceeded the €17,500 threshold... I did lots of other work for UK clients(& not in Germany) in 2019...   I have since had another contract with them in 2020   Is anyone able to comment,   Q. does the VAT threshold only apply to Revenue that is liable for VAT in Germany? ie the work for the German client? Q. is the threshold applied over the tax year or is it 12 month rolling? Q. strictly speaking is the requirement for VAT registration after the Threshold has been exceeded or prior? is there any grace period? Q. How strict are the rules for VAT registration? Should I just register for VAT now and carry on or do i need to go back to the German client and invoice the VAT? for the last contract in 2019 and the contract in 2020? Q. how best to resolve this with the German Tax Authority?   Regards      
  2. I'm a non-EU master student in Germany and confused as hell.    I was just able to get my work permit (little green document stating what's allowed for me to do) changed to allow freelancing for certain clients. This was possible after I got a letter from my Hochschule explaining to the Stadtamt, that they see that my tasks fit my studies.   My new work permit now explicitly mentions the client's names and that I may work with them on freelance basis.     One of these clients, a rather large studio is asking for me to include my VAT ID number (USt-IdNr.)  in my invoice. Looking into this, it seems you have to apply to that and it seems rather messy for someone not making large amounts of money. I am well under the taxable income bar.  I've so far been successful with just including my Steuernummer (11 digit number) with other clients.   Any thoughts/experiences/clues?   
  3. hello and thanks in advance for your help! I have a Berlin-based, non-profit client that receives funding from the German Federal Foreign Office on a per project basis. I typically charge 19% VAT, but because this client is a non-profit and do not pay VAT, I have a few questions below. I've researched the Toytown forums, reached out to my Buchhalter and directly to my client, but their answers have all been different, so I'm really hoping this community can help me please.   > do I have to personally pay VAT out of the funded project amount, thereby losing money on the project? if so, schade. > If I don't have to "collect" the VAT that they are not paying, what statement do I need to write on my invoice to the non-profit client stating why I am not charging VAT? > when I create my Umsatzsteuer-Voranmeldung on Elster, is it correct to put this invoice amount into line 41? if not, which line would this input into?   I really appreciate your help in getting to the correct answer and have a great day!
  4. I was wondering if I should add the note "reverse charge" in the invoice that I write for a client in USA. I also asked an accountant about this. The accountant originally said I should add a "reverse charge" note on the invoice the client, but I asked her if she was sure about that since this is a non-EU client) and then she changed her opinion saying that I should not add a "reverse charge" note.   My client is an e-learning business in USA. I work on their e-learning platform. They collect VAT for EU end customers and then they pay the VAT to the respective EU country through their company branch in Ireland. So, I don't have to deal with VAT. I get paid by their office in the US, so I am invoicing their US branch.   Should I add the "reverse charge" note in the invoices? Does it make sense to reverse charge non-EU businesses?
  5. Hi everyone, I'm getting my year's end paperwork in order and am really in need of some help and clarification. (My tax adviser is being impossible to reach these days...)   I moved to Germany from Canada at the end of May 2019. Based on what I’ve researched so far, I would report the income from Jan–May as foreign income to be taxed in Canada on Anlage AUS, right? Now, here’s the trickier part. As a freelancer I have multiple clients across the globe and get paid in multiple currencies. Only a small percentage of them are within the EU and would be subject to VAT, and thus my EU income is within the Kleinunternehmer limits. (Over 2019 I made about 2200€ with European clients, and above 20000 € worth from all other clients. My tax advisor has me registered as a small business but not with VAT; so I put this on all my invoices “Kein Ausweis von Umsatzsteuer aufgrund Anwendung der Kleinunternehmerregelung nach § 19 UStG.”) My question is how do I clarify on my tax forms how much of my income is from within the EU and how much is from outside? Do I even clarify such a thing? Basically I don’t want the tax office to see my total income being over the Kleinunternehmer limits and wondering “Woah, why isn’t she paying VAT on all of this? Let’s send her an angry letter and back-charge her a ton of VAT!” Also, when I list my total income in euros, where should I take the yearly average exchange rate from and where do I record this exchange rate (if anywhere). Many thanks for any and all assistance.  -Karyn