The 2012 worldwide VAT, GST and sales tax guide

254 G ERMANY
takes place. If the supplier issues an invoice before this date, the
tax point is the date on which the invoice is issued. For most
services under the reverse-charge procedure, the tax point is the
month in which the services are rendered, regardless of the date
on which the invoice is issued. For most services under the
reverse-charge procedure that last longer than a year, the tax
point is once a year (for the yearly part of the service).
Intra-Community acquisitions. The tax point for an intra-Community
acquisition of goods is the end of the month following the
month when the acquisition occurred. If the supplier issues an
invoice before this date, the tax point is the date on which the
invoice is issued.
Imported goods. The tax point for imported goods is the date on
which the goods clear customs or the date on which the goods
leave a duty suspension regime and are released for free circulation.
The date on which import VAT becomes due depends on
how the goods clear customs. The following are the applicable
rules:
• If the goods are cleared without using a payment-simplification
regime, in general, the import VAT payment is due within 10
days.
• If the goods are cleared using a payment-simplification regime,
payment is postponed for up to 45 days.
F. Recovery of VAT by taxable persons
A taxable person may recover input tax, which is VAT charged on
goods and services supplied to it for taxable business purposes
(used for taxable (output) services or supplies). Exceptions to this
rule exist. A taxable person generally recovers input tax by deducting
it from output tax, which is VAT charged on supplies made.
Input tax includes VAT charged on goods and services supplied
in Germany, VAT paid on imports of goods and VAT self-assessed
on the intra-Community acquisition of goods (see the chapter on
the EU, page 208) and VAT on purchases of goods and services
taxed under the reverse-charge procedure.
A valid tax invoice or customs document must generally accompany
a claim for input tax.
Nondeductible input tax. Input tax may not be recovered on purchases
of goods and services that are not used for business
purposes (for example, goods acquired for private use). The following
specific rules apply in Germany to the input tax deduction:
• The 10% rule. If an asset is used for less than 10% business
purposes, no input VAT recovery is allowed. This rule applies to
all assets.
• Private use. For corporations (for example, a GmbH or an AG)
that are taxable persons, any purchase of goods or services is
treated as being made for business purposes. Consequently, input
VAT recovery is allowed in full. If the goods or services are
used for private purposes, the legal entity is deemed to make a
supply of goods or services and output VAT is due.
• Luxury goods and services. Input tax may not be deducted for
some items of business expenditure. In general, if an item of
expense is allowable for German income tax purposes, the
input tax may be deducted.