How do I report foreign VAT in my VAT return?
February 5, 2022 | 45,00 EUR | answered by Oliver Götzinger
Dear tax advisor,
My name is Louis Werner and I run a small online trading company. In recent months, I have started selling products to other EU countries and paying VAT in those countries. Now I am faced with the challenge of correctly stating the foreign VAT in my VAT return.
So far, I have only paid VAT in Germany and reported it accordingly in my VAT return. However, I do not know how to correctly record the VAT from other EU countries in my VAT return. I am worried that I might make mistakes and risk tax back payments or even penalties.
Could you please explain to me how to correctly state the foreign VAT in my VAT return? Are there any specific forms or procedures that I need to follow? How can I ensure that I am doing everything correctly and avoid any issues with the tax office?
Thank you in advance for your help and support.
Kind regards,
Louis Werner
Dear Mr. Werner,
Thank you for your inquiry regarding the correct declaration of foreign VAT in your VAT return. It is understandable that you are concerned, as the correct remittance and declaration of VAT in other EU countries can be a complex matter. Therefore, I will provide you with a detailed explanation on this matter.
In principle, you must correctly declare the VAT you pay in other EU countries in your VAT return in Germany. This is done through the so-called Reverse Charge procedure. This means that you do not remit the foreign VAT directly to the foreign tax authority, but declare it in your VAT return in Germany. The tax authority will then forward the VAT to the respective foreign tax authority.
To correctly declare the foreign VAT in your VAT return, you typically need to use the "Summary Statement" (Zusammenfassende Meldung) form. In this form, you report the VAT amounts you have paid in other EU countries. These amounts must then also be declared in your VAT return in Germany.
It is important to provide all the necessary information correctly to avoid any mistakes. If you are unsure, I recommend seeking advice from a tax advisor who is knowledgeable in international tax matters. A professional tax advisor can assist you in understanding and implementing all the necessary steps correctly.
In conclusion, it is important to correctly declare foreign VAT using the Reverse Charge procedure and using the "Summary Statement" form. If you are unsure, I recommend consulting a tax expert to ensure that everything is done correctly and on time.
I hope this information is helpful to you. If you have any further questions, please feel free to contact me.
Best regards,
Oliver Götzinger
Tax Advisor
