What does 936l tax code mean

Tax code for foreign invoices

If services are procured across borders or goods are purchased in the course of intra-community acquisitions, certain regulations must be observed. For example, the transfer of tax liability must be shown on the invoice. Particular caution is also required when entering data in HV-SAP.

According to the Value Added Tax Act (UStG) 1994 - taking into account any tax exemptions according to § 6 - all deliveries and other services that an entrepreneur carries out in Germany against payment are taxable. The federal government is generally not an entrepreneur, but only operates in the context of its commercial operations and is only subject to sales tax or input tax deduction in this area.

However, the UStG 1994 also contains some provisions that refer to legal entities under public law or to non-entrepreneurs with a VAT number (extended entrepreneurial term according to § 3a Paragraph 5 Z. 2 UStG 194).

Entrepreneurs are self-employed, commercially or operationally active and intend to generate income. Thus, many business partners of the federal government are subject to sales tax and also show sales tax on their invoices. Particular attention should be paid to this point, especially with business partners from abroad.

Acquisition tax and reverse charge

Intra-community acquisitions are also subject to sales tax. In this case one speaks of the acquisition tax. The country of destination principle applies here: the company that receives the delivery from outside the EU has to pay the acquisition tax (domestic tax rate) in Germany, while the supplying company remains tax-exempt.

An intra-Community acquisition is when the object of the delivery is transported or dispatched from one Member State to another. Furthermore, the delivery as well as the acquisition must be taxable and the buyer must be a company or a non-entrepreneurial, legal person. Based on the provisions of Art. 19 of the Internal Market Regulation (BMR; Appendix to the UStG 1994), the purchaser is liable for tax in intra-Community acquisitions.

The reverse charge system applies to other services (e.g. services) obtained from the Aulsand. This means that the tax liability is transferred to the recipient of the service and has to be paid by him to the responsible tax office (his company headquarters tax office). The performing entrepreneur is liable for this tax in any case.

Tax code

In the case of intra-community acquisitions or other services from abroad, a tax code must also be entered in HV-SAP in addition to the net amount. If goods have been purchased, a tax code beginning with E * must be used.

If it is another service, a tax code beginning with R * is to be used. Tax codes with Y * are provided for businesses that are active in business.

Invoice features

If it is an intra-Community delivery or another service from abroad, the invoice must contain the following features in addition to the general invoice requirements:

  • UID number of the recipient
  • Net invoice
  • Reference to the tax exemption of intra-community delivery or the transfer of tax liability.

 

When ordering, it is necessary to provide the UID number so that it can be noted on the invoice and the supplier knows that he has to issue a net invoice.

Import sales tax

If goods are bought from a third country (i.e. outside the EU community area), the so-called import sales tax is due on import. This must be specified separately at the tax office, the prescription is usually based on the registration with customs. No separate entry is required in HV-SAP for import sales tax.

Advance VAT return (UVA)

If acquisition tax and / or reverse charge are incurred, the departments concerned must also regularly prepare advance sales tax returns and submit them to the tax office.

The activities in connection with the UVA can be taken over by the accounting agency (BHAG) upon conclusion of a corresponding contractual service. In this case, a “special power of attorney” from the budget-managing body is necessary so that BHAG can access the tax number via FinanzOnline.