Stress with Chain Transactions

Chain Transaction Calculator Germany 2022:

Select the countries participating in the chain transaction in the sequence of the invoicing path:

Country of the 1st entrepreneur: GermanyAustriaFrancePolandSwitzerland
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B2CPrintversion
No 4th CountryLegal situation 2019
Legal situation 2020
Country of the 2nd entrepreneur:GermanyAustriaFrancePolandSwitzerland
Country of the 3rd entrepreneur:GermanyAustriaFrancePolandSwitzerland
Country of the 4th entrepreneur:GermanyAustriaFrancePolandSwitzerland
Initiator of the transport:1st entrepreneur3rd entrepreneur4th entrepreneur
             
 
Sample page of the Chain Transaction Calculator: The following chain transaction evaluations corresponds to the information contained in the basic and full version. With a registration in the Chain Transaction Calculator you get access to evaluations in this form for about 4000 or even 8000 chain transaction examples.
 
Chain Transaction Calculator Germany / Dispatch by E2 (DE-DE-FR-FR)
 

Facts:

A French entrepreneur E4 (= last purchaser) orders a machine from his French supplier E3 (=2nd purchaser). The latter in turn orders the machine from the German wholesaler E2 (=1st purchaser). Since the wholesaler E2 does not have the machine in stock, he orders it from the German manufacturer E1 (= first supplier). The German wholesaler E2 instructs his forwarder with the pickup of the machine from the German manufacturer E1 and subsequent delivery to the French entrepreneur E4. The German wholesaler E2 (=intermediary operator) acts with his German VAT identification number and he communicates it to the German manufacturer E1 at the latest until the beginning of the shipment.

Brief description of the chain transaction:

  • "Supply 1" from E1 (Germany) to E2 (Germany)
    • Transaction without transport/dispatch assignment (§ 3 (7) UStG)
    • Taxable supply in Germany (E1)

  • "Supply 2" from E2 (Germany) to E3 (France)
  • "Supply 3" from E3 (France) to E4 (France)
    • Transaction without transport/dispatch assignment (§ 3 (7) UStG)
    • Taxable supply in France (E4)

  • Special feature of this chain transaction
    • Since the German entrepreneur E2 acts with his German VAT identification number towards the entrepreneur E1, the provision of the § 3 (6a) UStG (Article 36a (2) of the Directive 2006/112/EC), which has been effective since 01.01.2020, applies. As a result, the tax exempt supply shifts to the supply between E2 and E3 and the German entrepreneur E2 no longer needs to register in the destination country France.

Detailed description from the perspective of the individual entrepreneurs:

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

  • Outgoing Invoice:

    • Invoicing:
      This supply is taxable in Germany (E1). The invoice must therefore be issued with 19 % German VAT, stating the own (German) VAT identification number.

    • VAT Return:
      Declaration of the sales transaction in line 20/code 81 as taxable (domestic) supply.

From the perspective of the 1st purchaser E2 (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 line 55/code 66.

  • Outgoing Invoice:

    • Invoicing:
      Invoice without VAT with reference to the tax exemption (intra-Community supply) pursuant to § 4 (1)(b) UStG in conjunction with § 6a UStG (or alternatively with reference to Article 138 of the Directive 2006/112/EC) and specification of the own German VAT identification number as well as the (French) VAT identification number of the French entrepreneur E3.

    • VAT Return:
      Declaration of the sales transaction as an intra-Community supply in line 26/code 41.

    • EC Sales List (ESL / Recapitulative statement):
      Declaration as (intra-Community) supply to the (French) VAT identification number of the French entrepreneur E3.

    • Intrastat Supplementary Declaration (Intrastat SD):
      Declaration as dispatch to France. As of the reporting month January 2022, the country of origin and the (French) VAT identification number of the French entrepreneur E3 have to be reported.

From the perspective of the 2nd purchaser E3 (from France):

  • Incoming Invoice:

    • VAT return:
      The incoming invoice contains no VAT and is to be included as an intra-Community acquisition in the VAT return. Therefore, on the one hand, the VAT (acquisition tax) must be paid and, on the other hand, it can be treated as input tax on the same return.

    • Intrastat Supplementary Declaration (Intrastat SD):
      Declaration as arrival from Germany.

  • Outgoing Invoice:

    • Invoicing:
      This supply is taxable in France (E4). The invoice thus has to be issued with 20 % French VAT and specification of the own (French) VAT identification number.

    • VAT Return:
      Declaration of the sales transaction as a taxable (domestic) supply.

From the perspective of the last purchaser E4 (from France):

  • Incoming Invoice:

    • VAT return:
      The (French) VAT contained in the incoming invoice can be deducted as input tax and must be included in the VAT return accordingly.

Notes to the chain transaction:

  • The above detailed descriptions from the perspective of entrepreneurs E3 and E4 represent only an indication of how the tax assessment would be if the German laws were to apply in France. National deviations from the German legislation were also not taken into account in the chain transaction sketch and the brief description!

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

  • Alternative A: If the German entrepreneur E2 acts with a French VAT identification number towards the German entrepreneur E1, the tax exempt supply shifts to the supply between E1 and E2. However, the supply from E2 to E3 is then taxable in France (20% French VAT). The supply from E3 to E4 remains unchanged taxable in France.

 
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