Stress with Chain Transactions
 
Sample page of the Chain Transaction Calculator: The following chain transaction evaluations corresponds to the information contained in the full version. With your registration in the Chain Transaction Calculator you get access to evaluations in this form for all 5000 examples of the Chain Transaction Calculator.

Chain Transaction Calculator Germany 2019:

Select the countries participating in the chain transaction in the sequence of the invoicing path. For the evaluation of a chain transaction, you must also select which one of the entrepreneurs arranges the transport. The result appears immediately after this selection. You can always change the already selected countries via the input screen.

Country of the 1st entrepreneur: GermanyAustriaFrancePolandSwitzerland
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Legal situation as of 2020
Country of the 2nd entrepreneur:GermanyAustriaFrancePolandSwitzerland
Country of the 3rd entrepreneur:GermanyAustriaFrancePolandSwitzerland
Country of the 4th entrepreneur:GermanyAustriaFrancePolandSwitzerland
Initiator of the transport:2nd entrepreneur3rd entrepreneur2nd entrepreneur as supplier
             
 
Chain Transaction Calculator Germany / Dispatch by E1 (CH-AT-DE)
 

Facts:

A German entrepreneur E3 (= last purchaser) orders a machine at his Austrian supplier E2 (=1st purchaser). Since the supplier E2 does not have the machine in stock, he orders it from the Swiss wholesaler E1 (=first supplier) and instructs him to dispatch the machine directly to the German entrepreneur E3. The Swiss wholesaler E1 declares the goods for free circulation in Germany and delivers them "duty and tax paid" and is therefore liable to pay the import VAT.

Brief description of the chain transaction:

  • Registration obligations:
    • The Swiss entrepreneur E1 has to obtain a VAT registration in the country in which the goods are declared for free circulation (Germany).
    • The Austrian entrepreneur E2 has to obtain a VAT registration in the destination country Germany.

  • "Supply 1" from E1 (Switzerland) to E2 (Austria)
    • Assignment of transport or dispatch
    • Relocation of the place of supply according to § 3 (8) UStG to Germany
    • Taxable supply in Germany

  • "Supply 2" from E2 (Austria) to E3 (Germany)
    • Transaction without transport/dispatch assignment (§ 3 (7) UStG)
    • Taxable supply in Germany (E3)

Detailed description from the perspective of the individual entrepreneurs:

From the perspective of the 1st supplier E1 (from Switzerland):

  • Registration obligations:

    • The Swiss entrepreneur E1 has to obtain a VAT registration in the country in which the goods are declared for free circulation (Germany) and act with his German VAT identification number towards E2.

  • Outgoing Invoice:

    • Invoicing:
      This supply is taxable in Germany due to the relocation of the place of supply to Germany pursuant to § 3 (8) UStG. The invoice must therefore be made out with 19 % German VAT and stating the own German VAT identification number.

    • Import value added tax:
      Since the Swiss entrepreneur E1 has the right to dispose of the goods when crossing the border and is the debtor of the import VAT, he is entitled to reclaim this amount as input VAT.

    • VAT Returns:

      a) at the Swiss Tax Office: A declaration in the VAT Return is governed by the statutory provisions of the third country.

      b) at the German Tax Office: Declaration of the sales transaction in row 26/code 81 as a taxable (domestic) supply and payment of the VAT from this supply to the German Tax Office.
      In order to reclaim the import VAT as input VAT, the import VAT is to be included in the VAT Return in row 55/code 62 (Resulting Import VAT).

From the perspective of the 1st purchaser E2 (from Austria):

  • Registration obligations:

    • The Austrian entrepreneur E2 has to obtain a VAT registration in the destination country Germany and act with his German VAT identification number towards E1 and E3. The entries listed below must therefore be included in the German VAT return.

  • Incoming Invoice:

    • VAT return (at the German Tax Office):
      The German VAT contained in the incoming invoice can be deducted as input tax and must be included in the VAT return in row 53/code 66.

  • Outgoing Invoice:

    • Invoicing:
      This supply is taxable in Germany (E3). The invoice must thus be made out with 19 % German VAT and specification of the own German VAT identification number.

    • VAT Return (at the German Tax Office):
      Declaration of the sales transaction as a taxable (domestic) supply in row 26/code 81 and payment of the VAT from this supply to the German Tax Office.

From the perspective of the last purchaser E3 (from Germany):

  • Incoming Invoice:

    • VAT return:
      The German VAT contained in the incoming invoice can be deducted as input tax and must be included in the VAT return in row 53/code 66.

Notes to the chain transaction:

  • If entrepreneur E1 commissioned the transport but does not deliver "duty and tax paid" and the declaration for free circulation is made for entrepreneur E2 (or another entrepreneur), no relocation of the place of supply pursuant to § 3 (8) UStG takes place. The solution for this version corresponds to the one in the example in which entrepreneur E2 arranges the transport.

  • CAUTION: If the Austrian entrepreneur E2 does not operate with a German VAT identification number but with his own Austrian VAT identification number, for example, an intra-Community acquisition is triggered in the country of the used VAT identification number without entitlement to deduct VAT (§ 3d Sentence 2 UStG). This means that the entrepreneur E2 must pay VAT (acquisition tax) in Austria without entitlement to reclaim this VAT as input VAT. See also 3.14. (13) example a1 UStAE.

  • General information for the assessment of chain transactions can be found at www.chain-transaction.de.

  • You can find the German version in the reihengeschaeftrechner.de.

  • The assessment of this chain transaction from the Austrian perspective you can find in the reihengeschaeftrechner.at

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