In addition to keeping manual files, professionals have to fulfil even more far-reaching recording obligations, for example under the Money Laundering Act. In addition, internationally active professionals are subject to additional special reporting obligations under the German Value Added Tax Act and the Foreign Trade and Payments Ordinance. The main features are presented below:<\/p>\n
I. Turnover tax in the internal market<\/p>\n
Pursuant to \u00a7 1 I No. 1 UStG<\/a>, services are subject to turnover tax in Germany (= according to \u00f6 1 II 1 UStG, the territory of the Federal Republic of Germany with the exception of duty-free zones), if<\/p>\n 1. the person providing the service fulfils the entrepreneurial status in accordance with \u00a7 2 UStG<\/a> and In the case of taxable supplies, the taxable person is required to provide certain information to the competent authority.<\/p>\n 1) Entrepreneur 2) Place of performance (a) the place-of-business principle By way of exception, according to \u00a7 3a) I 2 UStG, the permanent establishment of the enterprise is deemed to be the place of performance if the other performance is carried out by it and the corresponding turnover is actually attributable to it.8 Although the term “permanent establishment” refers to undertakings engaged in commercial activities, an analogous application of the term is applicable to law firms of the legal professions to which the turnover of the undertaking must be attributed.9 A distinction must be made here between independent and dependent operating units or offices. Whereas the aforementioned applies to the independent permanent establishment, supplies that economically emanate from dependent permanent establishments are not taxable.10 According to \u00a7 2 UStG<\/a>, these do not constitute a business. It is important for this attribution that the other services have been performed by the members of the dependent permanent establishment.11<\/p>\n On the other hand, who or which part of the company received the order is not taken into account.12 The following services are covered by the place-of-business principle: 1Rademacher, Claudia, Cross-border services of lawyers and tax advisors in turnover tax law – Part I, INF 1997, 385 (385) by lawyer Johannes Fiala (Munich) and Sandra Seremek (Eggenfelden)<\/p>\n","protected":false},"excerpt":{"rendered":" In addition to keeping manual files, professionals have to fulfil even more far-reaching recording obligations, for example under the Money Laundering Act. In addition, internationally active professionals are subject to additional special reporting obligations under the German Value Added Tax Act and the Foreign Trade and Payments Ordinance. The main features are presented below: I. […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","rank_math_focus_keyword":"","rank_math_description":"","rank_math_title":""},"categories":[492],"tags":[515],"class_list":["post-19624","post","type-post","status-publish","format-standard","hentry","category-veroeffentlichungen-en","tag-selbstaendige-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.fiala.de\/en\/wp-json\/wp\/v2\/posts\/19624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fiala.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fiala.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fiala.de\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fiala.de\/en\/wp-json\/wp\/v2\/comments?post=19624"}],"version-history":[{"count":0,"href":"https:\/\/www.fiala.de\/en\/wp-json\/wp\/v2\/posts\/19624\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fiala.de\/en\/wp-json\/wp\/v2\/media?parent=19624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fiala.de\/en\/wp-json\/wp\/v2\/categories?post=19624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fiala.de\/en\/wp-json\/wp\/v2\/tags?post=19624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n2. the place of supply of services for consideration pursuant to \u00a7 1 I No. 1 UStG<\/a> is within Germany.1<\/p>\n
\nEntrepreneurs within the scope of \u00a7 2 UStG<\/a> are natural and legal persons, as well as associations of persons, provided that commercial or professional activities are independently carried out by them.
\nAccording to \u00a7 1 BRAO<\/a>, a lawyer is an independent organ of the administration of justice who exercises a liberal profession and whose activity is not of a commercial nature according to \u00a7 2 BRAO<\/a>.2
\nThis applies accordingly to the tax consultant, \u00a7 32 II StBerG<\/a>.the professional is thus an entrepreneur in the sense of \u00f6 2 1 UStG. These requirements for entrepreneurial status are not limited to German professionals.3<\/p>\n
\nThe services of a trader fall under the concept of other services which, according to \u00a7 3 IX in conjunction with \u00a7 3 I UStG<\/a>, do not constitute supplies. \u00a7 3 I UStG<\/a> do not constitute supplies.4
\nIn order to determine taxability, the following principles must be distinguished; in addition to the place of supply, the type of service, such as the recipient of the service, also has an effect on the taxability of the service.5<\/p>\n
\nIn principle, the place of business principle according to \u00a7 3 a) I 1 UStG<\/a> in conjunction with \u00a7 21 AO<\/a> is relevant. \u00a7 21 AO<\/a> is relevant.6 Accordingly, the place of performance is the place from which the entrepreneur operates his business. With respect to a professional, this is the location of his or her office.7<\/p>\n
\nThe consequence of the place of business principle is the taxation of the service in the country in which the place of business of the supplying company is located.13<\/p>\n
\n– Consultancy services to non-entrepreneurs in the EU14
\nThis also includes the representation of clients before courts, authorities, as well as contract negotiations 15, even if the litigation does not take place at the place of the law firm’s registered office but at the place of jurisdiction 16
\n– Non-typical legal services provided to non-entrepreneurs in the EU 17<\/p>\n
\n2Ahrens, Hans-J\u00fcrgen, Die Stellung des Rechtsanwalts – Berufspflichten und prozessuale Fairne\u00df, in: Gilles, Peter, Anwaltsberuf und Richterberuf in der heutigen Gesellschaft, Baden-Baden 1991, p. 21
\n3Pott, Hans-Michael\/Geibel, Stephan, Umsatzsteuer und grenz\u00fcberschreitende Anwaltsleistungen, BRAK-Mitt. 1995, 149 (149)
\n4dito; Schultz, Florian, Umsatzsteuerausweis in Rechnungen international t\u00e4tiger Anwalts- und Notarkanzleien, AnwBl. 1996, 553 (553)
\n5Schultz, Florian, Umsatzsteuerausweis in Rechnungen international t\u00e4tiger Anwalts- und Notarkanzleien, AnwBl. 1996, 553 (553)
\n6Rademacher, Claudia, Grenz\u00fcberschreitende Leistungen von Anwalten und Steuerberatern im Umsatzsteuerrecht – Teil I, INF 1997, 385 (386); 6Pott, Hans-Michael\/Geibel, Stephan, Umsatzsteuer und grenz\u00fcberschreitende Anwaltsleistungen, BRAK-Mitt. 1995, 149 (150)
\n7Pott, Hans-Michael\/Geibel, Stephan, Umsatzsteuer und grenz\u00fcberschreitende Anwaltsleistungen, BRAK-Mitt. 1995,149 (150)
\n8Rademacher, Claudia, Cross-border services of lawyers and tax advisors in turnover tax law – Part I, INF 1997, 385 (386)
\n9dito; Pott, Hans-Michael\/Geibel, Stephan, Umsatzsteuer und grenz\u00fcberschreitende Anwaltsleistungen, BRAK-Mitt. 1995, 149 (150)
\n10Rademacher, Claudia, Cross-border services of lawyers and tax advisors in turnover tax law – Part I, INF 1997, 385 (386)
\n11dito
\n12dito
\n13dito
\n14dito (389)
\n15dito (387)
\n16dito (386)<\/p>\n