“POMMESERLASS”: END OF VAT TOLERANCE REGARDING THE TRANSFER OF GOODS TO AND SUPPLIES IN GERMANY
10 October 2013
From 1 October 2013 the German tax authorities make a permanent end to the tolerance allowing foreign VAT payers to identify for VAT purposes in Germany in order to have their supplies from Belgium (or from another EU member state) to German clients invoiced as a local supply in Germany. The tolerance is maintained only in the case where the supplier transports the goods with own means to the German client.
The ban of this tolerance implies that both the supplier and the customer need to comply with a number of additional VAT formalities (verification of VAT identification numbers, intrastat, etc.)
The German VAT identification has as a consequence that foreign suppliers could “transfer” the goods (i.e. an assimilated intra-Community supply of goods from one’s own member state and an assimilated intra-Community acquisition of goods in Germany under a German VAT identification number), followed by a local supply of goods under the German VAT identification number of the foreign VAT payer to the German client.
However, if the supplier does not himself (with own means) transport the goods to Germany, the aforementioned tolerance is no longer accepted. This implies that henceforth, the aforementioned transaction needs to be reported as a direct intra-Community supply of goods in Belgium (in the hands of the Belgian supplier) and as an intra-Community acquisition of goods in the hands of the German client. The reporting does not only concern VAT returns and listings of both parties, but also and most importantly the intrastat return (dispatch by the supplier and arrival with the customer).
The above has as a consequence that businesses that are currently, often for commercial reasons, splitting up their direct supplies from a VAT technical point of view, now need to revise their internal procedures.
Should you have any further question or require personal advice with respect to the impact of these rules on your company, please contact your usual contact person at BDO or you may send an email to [email protected] for the attention of one of the members of the Competence Center VAT:
Erwin Boumans: [email protected], 02/778.01.00
Pascal Dauw: [email protected], 09/210.54.10
Kaatje Bondewel, [email protected], 02/778.01.00
Brigitte Braeckmans, [email protected], 03/230.58.40
Joëlle Teuwen, [email protected], 081/ 20.87.87