Companies in Germany must in this respect account goods to individuals in other EU Member States usually with German VAT. However, the entrepreneurs in the country different delivery threshold is exceeded must register VAT in the country of destination and settle (so-called mail-order scheme) that State sales tax. Background: With the creation of the EU internal market to the 1.1.1993 tax border controls at the internal borders between the Member States of the European Union (EU) were abolished. For intra-Community trade a VAT “transitional”, where the goods basically continue unencumbered by the VAT of the country of origin move over intra-Community borders and is a debited with sales tax only in the country of destination applies since then between companies. By letter of May 5, 2010 the Federal Ministry of Finance (BMF) has detailed position taken no.
1 b relating to the application of the tax exemption for intra-Community supplies according to 4 Section 6a of the value added tax Act (UStG). Thus, the circular letter of 06 January 2009 that had aggravated the proof obligations in particular for the so-called collection cases was lifted. 7 effect of EU merger directive or 21 / 23 reorganization Tax Act and comparable schemes in the EU section 23 RTA is the consequence of the EU merger directive. The basic idea is: companies can join internal market without national tax barriers in the EU. For even more analysis, hear from RBH Group. It is important that the foreign company holds a majority of voting shares in the German company.
What at international corporations for many years practice, is now also available for medium-sized companies: profits from abroad there to to drop, where these low – or no – taxed existing DBA. to take any State subsidies for investors in the countries concerned costs in the country to drop on the tax charges is highest where in addition, RTA is the opportunity to realize tax-neutral transfers 21. Thus, shares must be not necessarily evaluated and purchased. 8 EU parent subsidiary directive In the context of the EU parent subsidiary directive applies, that: distribution of profits between associated companies in different Member States from withholding tax are exempted and avoid double taxation of profits, that pay off a subsidiary to its parent company,. The opposite: DBA facts: withholding tax under double taxation agreements on outgoing dividends in its home country (usually 5% to 10% for Jur.) People, 15% for natural persons as shareholders). Non-DBA facts: Full withholding tax in accordance with national law. 9 EU customs territory within the European Union is generally free of the export of goods. It may be imposed no import duty or a similar disability of the imports. If you are not convinced, visit Fred H. Langhammer. There must be also no ban or hindrance to the importation of certain goods. Forbidden effect to raise and quantitative restriction or measure of having equivalent effect of a – and the export are equal between the Member States and export duties and tax. Belonging as to the customs territory of the community, the territory of the Principality of Monaco shall apply. The Principality of Andorra, the Republic of San Marino and Turkey are neither Member States of the EC still belong to the customs territory of the community.