European Union Value Added Tax

The intra-Community acquisition (short- IgE) is the counterpart to the intra-Community supply or intra Spend. With the help of these sales tax regulations ensures that deliveries will be taxed among entrepreneurs in the State of the transferee ( destination principle ). This principle applies uniformly in the European Union in order to achieve the sales tax in the State of final consumption.

An intra-Community acquisition can also be done by individuals when new vehicles are purchased from another EU country.

Justification for the taxation

The legal instrument of the intra-Community acquisition, corresponding to the intra-Community supply has replaced that legislation up to and including 1992 in force in the various Member States of the then European Community. It is the tax law significant part of the European single market, because instead of customs clearance at the borders of the Member States by the facts of the taxable IgE the ( simpler ) sales taxation entered by the purchaser.

Legal framework

Requirements for intra-Community acquisitions

In Germany, the intra-Community acquisition is regulated in § 1a of the VAT Act. A business must meet the following requirements in order to establish an intra-Community acquisition:

Gelangensvoraussetzung

The returned item must reach physically from one Member State to another. If the object is thus destroyed, for example, in the Member State of departure of the transport, there is no intra-Community supply and no intra-Community acquisition.

Purchaser requirement

The purchaser who has taxable intra-Community acquisition, the subject for his company needs to acquire. By notifying the supplier 's VAT registration number, it indicates that this condition is fulfilled.

Basically, the purchaser can not be a small business owner. Does the purchaser exempt transactions (for example, medical treatment of a doctor ), must be differentiated. These so-called half- entrepreneurs as individuals pay the sales tax that is payable in the country of origin, to the suppliers and do not have to worry about for a taxation of acquisitions in Germany. Once these entrepreneurs but has more than € 12,500 a year acquisitions from other European countries ( acquisition threshold ), this simplification scheme falls away and the entrepreneur must apply for a sales tax identification number and taxable intra-Community acquisitions. These individuals may also voluntarily waive these simplification rules. This waiver binds the contractor for two years. For the exercise of the waiver if they supply the supplier 's VAT registration number. This option is useful when the domestic tax is lower than the sales tax rate of the supplier.

In the intra-Community supply of new vehicles is also for deliveries to private prior to an intra-Community acquisition, so that the buyer must carry out the acquisition of taxation ( § 1b).

Suppliers prerequisite

The supplier may not be a small business and the delivery of his business has to provide. This assumption is confirmed by the supplier, it renders the supply of tax-exempt under the specification of its tax identification number.

Spend special case

§ 1a paragraph 2 UStG is the counterpart to the intra-Community Spend. If a business is active in several countries, he has to pay taxes on an intra -Community acquisition once it permanently to an object in another EU country, for example, because he drives products at a fair and sold there. Thus, the entrepreneur must be registered and have appropriate tax ID numbers in several Member States. This scheme is again based on the destination principle.

Place of an intra -Community acquisition

According to § 3d of the Place of an intra -Community acquisition is where the goods are located at the end of the promotion. If an object that is transported from France to Germany, is the place in Germany, and the intra-Community acquisition is taxable in Germany. The acquirer uses a different tax ID number as the German, an acquisition must be taxed additionally in the land of the ID number. The intra-Community acquisition in Germany thereof is not covered, it must continue to be taxed. For the second acquisition in the output state of the ID number according to the latest ECJ and BFH -law no deduction is possible. So the destination principle should be enforced.

Controllability, tax exemptions

If all conditions, acquisition domestically is controlled in accordance with § 1 para 1 no 5 UStG. The purchase may be tax-free under § 4b UStG. The tax exemptions for shipments within § 4 do not apply.

Tax base, tax rate

As with domestic supplies, the tax base is according to § 10 of the fee, while spending the purchase price is set. Depending on goods, the tax rate in Germany is 7 or 19 %.

Control development, control debtors, deduction

The tax is levied issue of the invoice, no later than a month, following the acquisition (§ 13 Paragraph 1 No. 6 UStG). The purchaser is liable to pay tax. At the same time the buyer can deduct the VAT as input tax back, if not grab exclusions ( for example, if the goods are used for certain exempt supplies ). Here, the same principles apply as in the deduction from running on domestic deliveries to the purchaser (see § 15 Section 1 Sentence 1 No. 3 UStG).