Did you know that ...

 

the German value added tax (VAT) law requires special details for your invoices concerning transactions in Germany:

 

1. completed name and address of the supplier and the customer,

    

2.     suppliers official tax registration number or VAT identification number from the tax inspection,

 

3. date of issue,

 

4. a consecutive number with one or more number sequences, for the definite identification of the invoice

 

5. quantity and customary trade designation of the delivered goods or services rendered

 

6. date of delivery or services rendered or collection of payment if this date is fixed and not identical with the date of issue,

 

7. distribution of the payment to different tax rates and / or different tax exemptions for the delivered goods and services rendered and every agreed deduction of the payment in advance if not posted in the payment,

 

8. the legal tax rate and the calculated VAT amount or in the case of VAT exemption an indication that the delivery or service is tax exempt.


 

General Information:

 

It is statutory that all listed elements of the invoice are integral part for invoices to other entrepreneuers or legal entities.

 

The VAT law requires all details even you perform only tax exempt deliveries or services..

 

Only in one document you have to record the tax base and the VAT amount. It is admissible that all other specifications are recorded in other documents. In this case the law asks for an extra indication on the invoice.

 

           In the case of long term contracts (i.e. for maintanances or lease contracts) it is possible that all details are recorded in the basic contract. The counterfoils have to show the period of the service.

 

If you intend to cash in the input tax it is the stipulation that all mentioned details are recorded in the original invoice you received from the supplier.

 

If you write out a credit item you have to specify the credit item as mentioned. In this case the law requires the specification of your and your customers tax identification number. The issuer of the credit item has to fulfill all required documents with the necessary details.

 

Transition period

 

The law requires from January 1, 2004 all listed elements on the invoice.

 

If you want to claim the input tax, it is necessary on all invoices you receice after June 30, 2004, that the date of issue, consecutive number and legal tax factor or an indication of tax exemption are mentioned. 

You don´t have a claim against the tax authority withour these specifications.

 

 

Obligation to preserve business invoices:

 

All invoices, you

 

·        filed  (output invoices)  a n d

·        received (input invoices)

 

you have to preserve the original / copy for 10 years, begining with the yearend of issue.

 

Ask you tax consultant for more information.