Value Added Tax/ Sales Tax/ GST– A Complex Matter! Avoid expensive mistakes.
VAT (Value Added Tax) is a tax that is levied on the sale of goods or the delivery of services from entrepreneurs. It is similar to sales tax or GST (Goods and Services Tax) in other countries.
There is hardly any other type of tax for which regulations have changed as frequently as in the case of VAT. The rules in the individual EU countries are quite harmonized; however, they differ from each other in the details. It is very difficult for any tax-payer to do everything correctly. Even more so as tax-payers are often not even aware of existing rules and how the rules should be applied. Mistakes can often lead to grave consequences as it may not be possible to rectify errors, such as correcting invoices, or corrections may be time-consuming or cause trouble in customer relations. Or, mistakes can simply cost you a lot of money.
Typical mistakes people make in VAT – and how we can help as certified tax advisors
If you would like to know some instances related to VAT that our clients have had to face before we took over their assignment or because the clients had not consulted with a tax advisor in advance, you can find a couple of interesting cases in the Testimonials section.
Here we have listed the 11 most common VAT mistakes for you. Find out here what you can expect when VAT mistakes are made.
Hence, please ask us, before you act!
This is how we assist you with VAT
We can provide assistance in the following cases:
- VAT registration of/tax certificate for foreign companies and entrepreneurs in Germany. Also for sellers on electronic internet marketplaces so that they will be authorized recipients in Germany. Find out more here.
- If there are VAT related problems, we try to save what can be saved: We deal with the tax authorities
- If required, we go to trial on your behalf
- In order to avoid mistakes in the future: we clarify how your outgoing invoices should look like before you issue any invoices, so that you do not face any problems with the fiscal authorities
- Upon request, we prepare an Expert opinion on VAT for your employees who prepare outgoing invoices. Part of the expertise is a decision matrix and, it is clear to your employees, how the invoices should look like
- We check your incoming invoices and inform you, in case of irregularities. If you have not yet paid, it is easy to request a corrected invoice.
- Our accountants can identify the possibility of VAT related problems while making entries of documents.
- We discuss at the beginning where to register yourself to pay the VAT and upon request, we look after the coordination with the VAT experts in the respective countries
- We answer all the questions of the tax authorities and are the first point of contact in case of tax field audits.
- We undertake the VAT registrations of companies from foreign countries in Germany–there is no standard procedure here, as all tax offices have their own procedures.
Here you can read more about International VAT and expert opinions on VAT.