Finer Values in Sales Tax Solutions

Most entrepreneurs in Germany are obliged to submit a regular VAT return. Whether this happens monthly or quarterly depends on the amount of your tax liability in the previous calendar year. The so-called small business owners are the exceptions. This term applies to everyone whose turnover in the previous calendar year was less than 17,500 euros and is not expected to exceed 50,000 euros in the current year. You have the option of claiming an exemption from VAT. If the input tax exceeds the sales tax, there is a claim to reimbursement from the tax office. Companies that spend more time creating then. If you need advance VAT returns, you have the option to apply for a permanent extension. This extends the deadline for submission by one month.

Finest taxation Options

One of the most important taxes in Germany (share of total revenue over 30 percent), charges all consumer spending except for a few expenses. For obvious technical reasons, however, the tax is not levied on the consumer, but on the companies that offer goods or services; the legislator assumes that they in turn will increase their price demands accordingly, so that ultimately consumption is actually economically burdened (indirect tax). Bring the best choices in this case. To calculate sales tax you can have best options.

  • The standard sales tax rate in Germany is 19 percent, a reduced rate of 7 percent is levied on many groceries and certain other selected basic goods. So that the share of sales tax costs that an entrepreneur has to factor into his price request does not keep increasing the more entrepreneurs are involved in the creation of a service, the sales tax within the corporate sector is reduced again and again by paying every entrepreneur the sales tax, which in the prices of the services purchased by him is included, is reimbursed (input tax deduction). 
  • In this way it is achieved that in the end it does not matter for the amount of the burden whether only one or many entrepreneurs were involved in the provision of the service in succession (competition neutrality).In a cross-border context, sales tax follows the country of destination principle, i.e. the country in which the consumption ultimately takes place receives the right to tax sales.

Tax on the turnover of a company, is to be paid by the entrepreneur, but is passed on to the customer via the pricing (indirect tax). This also corresponds to the legal objective, because consumption is to be taken as one of the indicators of the ability to pay taxes.


A sales tax can theoretically be levied at all or only at selected trading levels ( all-phase sales tax , multi-phase sales tax , single-phase sales tax). In the case of a survey at all production and trade levels one after the other, sales tax is levied several times on the value of the goods in the course of the production and sales process, which can lead to an accumulation of sales tax burdens in the course of the business chain.