STEP 1 OF 3
Personal information
Side Tab Form
"*" indicates required fields
On November 18, 2022, Germany’s Federal Ministry of Finance released a new certificate of VAT taxable status for entrepreneurs based in Germany. We dive into the importance of this new certificate and how it influences local and international business and VAT operations.
The latest certificate, VAT 1 TN Proof, applies to entrepreneurs based in Germany that would like to claim input from a third country. In 2019 entrepreneurs were required to issue a Bundesministerium für Finanzen (BMF) letter. A BMF letter is issued by the Federal Ministry of Finance and is a decree of agreement between federal states. In 2022, entrepreneurs were required to issue a USt 1 TN form.
However, recent amendments had to be made to ensure minimal objection in the foreign registration and claim process. The changes in the certificate include the following:
The changes consider the inclusion of the date of the entrepreneur’s VAT registration. Some third countries require this date to be able to check whether the VAT registration was given during the refund period. The other changes are editorial or typographical.
In the event of submitting the new certificate for claiming VAT in a third country, the certificate will only be valid if it’s issued by entrepreneurs who are eligible to deduct input tax. If the entrepreneur only carries out tax-exempt sales that exclude the input tax deduction, the certificate will not be valid to issue (§ 19 paragraph 1 or § 24 paragraph 1 UStG).
If entrepreneurs are required to provide proof of registration by foreign authorities, the German tax authorities have no objections to confirming the registration as an entrepreneur as long as the content of the forms corresponds to the regulatory content of the model form USt 1 TN.
Staying up to date with the latest legislation and VAT treatment can be tricky – unless you have experts in your corner. Find the right solution for your business to successfully register and claim VAT in Germany.
Spain’s e-Invoicing Landscape Changes Again: VERI*FACTU Postponed as Mandatory B2B e-Invoicing Moves Towards October 2027 Spain has taken two important steps in the development of its digital invoicing framework. On the one hand, the Ministry of Finance has announced plans to postpone the outstanding obligations under the invoicing software rules commonly associated with VERI*FACTU until […]
Can You Reclaim VAT on Corporate Events When Family Members Are Invited? Most finance teams already know that VAT on staff entertainment is a complicated area. What is less well known is what happens when a corporate event extends beyond employees to include their families. Does inviting partners and children to a company away day […]
Where did that invoice go? Sage Intacct customers won’t have to ask anymore Every finance team that sells across borders knows the feeling. You’ve issued the invoice, the work is done, and now you wait. Did it arrive? Did the local tax authority accept it? Is it sitting in a queue somewhere waiting to be […]
eezi by VAT IT and Consilio.io: SAP Concur e-Invoicing Partnership Every Business is Also Somebody Else’s Supplier A finance team running SAP Concur usually thinks of e-Invoicing as an incoming problem. A supplier issues something and Concur Invoice has to make sense of it. But that same business is also a supplier to somebody […]
When You Need an Intra-Community VAT Number and How to Get One If your business buys or sells goods and services across EU borders, intra-community VAT is something you will need to understand. It is not the same as domestic VAT, and the rules around registration, invoicing, and reporting work differently from what most businesses […]
5 Top AI-Powered Tax Compliance Tools Tax compliance software has come a long way and what used to mean basic automation now includes machine learning, smarter data processing and tools that can spot problems before they become expensive. The category has a new name: AI-powered tax compliance. For finance and tax teams managing tax […]
This webinar explains how US businesses can identify and recover foreign VAT, breaking down key concepts like reciprocity and showing where refund opportunities are often missed.