Sales Tax legislation which in certain cases not performing entrepreneur, but his customer (beneficiary) is liable to pay sales tax.
1st term: Sales Tax legislation which in certain cases not performing entrepreneur, but his customer (beneficiary) is liable to pay sales tax.
2 episodes: The performing entrepreneur may charge the customer in these cases, only the net pay bill. The customer has the respect of the service in question to pay their own sales tax liability to the tax office (similar to the estate tax). It may, however, insofar as he is entitled to deduct VAT, sales tax even make these yourself back as input tax. Respect, there is in terms of economic stress effects no difference between the reverse charge method and the normal sales tax. The method only leads to a simplification of the tax authorities and the contractor be paid (because he does not have to declare to the tax office the operation). V.A. in cross-border cases considerable administrative burden is thereby saved, because the reverse charge procedure saves a foreign entrepreneur, having to go to a dt. Inland Revenue, and the dt. Treasury takes any risk of having to eventually enforce tax assets abroad.
3rd application: a) The reverse charge procedure under EC law va provided for cross-border cases:
(1) In cases of transboundary catalog services (§ 3a IV UStG) and cross-border intra-Community transport services (§ 3b III clause 2 UStG) mediation services (§ 3a II no. 4 sentence 2 UStG) and work performance (§ 3a II no. 3c UStG ) it is mandatory under certain circumstances all Member States.
(2) In all other cases of cross-border transactions is its introduction to allow Member States (Art. 21 of the Sixth EC Directive of 1977).
(3) Its application to other case constellations EC law only permitted if it has been approved as a measure to prevent tax evasion or tax avoidance or tax as a measure to simplify the EC for this (kind. 6th Directive 27).