How does value-added tax work for intra-community deliveries?
October 20, 2023 | 40,00 EUR | answered by Oliver Götzinger
Dear tax consultant,
My name is Katrin Walter and I run a business that sells goods within the EU. Lately, I have been having difficulties correctly handling the value added tax for intra-community supplies. I have already done some research, but I am still unsure about how exactly this process works.
My current situation is as follows: My company has customers in various EU countries, and I regularly ship goods to these customers. I know that for intra-community supplies, I must calculate the value added tax based on the VAT rates of the respective destination country, but I am not sure how to implement this in practice.
My current status quo is as follows: I calculate the value added tax based on the German VAT rates, as I am not sure how to correctly apply the VAT rates of other EU countries. I am worried that by doing this, I may be providing incorrect information and potentially engaging in tax evasion.
My question to you as an experienced tax consultant is: How exactly does the value added tax work for intra-community supplies? What steps do I need to take to handle the value added tax correctly and avoid potential errors? Are there specific forms or documents that I need to fill out? I would greatly appreciate it if you could explain to me step by step how to properly carry out this process.
Thank you in advance for your assistance.
Best regards,
Katrin Walter
Dear Ms. Walter,
Thank you for your inquiry regarding VAT on intra-community supplies. I understand your concern and would like to help you better understand this topic and avoid possible errors.
Intra-community supplies are goods deliveries that take place between companies in different EU countries. Special regulations apply to these supplies in terms of VAT to ensure that the tax is handled correctly.
In general, for intra-community supplies, you do not have to calculate VAT in Germany, but in the destination country of the recipient of the goods. This means that you must apply the VAT rates of the respective destination country to calculate the VAT correctly.
To implement this in practice, you must first ensure that you have the VAT identification number (VAT ID) of your customers in other EU countries. Only with this number can you handle the VAT correctly.
Once you have calculated the VAT correctly, you must submit a so-called Recapitulative Statement (RS). In this statement, you must list the intra-community supplies and specify the VAT for each EU country. The RS is usually submitted quarterly or monthly to the tax office.
It is important that you handle the VAT correctly, as otherwise serious consequences can occur, such as tax payments or fines for tax evasion. Therefore, I strongly recommend that you contact a tax advisor who can assist you in correctly handling VAT on intra-community supplies.
I hope that my explanation helps you and that you now have a better understanding of how to correctly handle VAT on intra-community supplies. If you have any further questions or need additional support, I am happy to help.
Best regards,
Oliver Götzinger
