Stress with Chain Transactions

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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No 4th CountryLegal situation as of 2020
3rd entrepreneur as supplier
Country of the 2nd entrepreneur:GermanyAustriaFrancePolandSwitzerland
Country of the 3rd entrepreneur:GermanyAustriaFrancePolandSwitzerland
Country of the 4th entrepreneur:GermanyAustriaFrancePolandSwitzerland
Initiator of the transport:1st entrepreneur2nd entrepreneur4th entrepreneur2nd entrepreneur as supplier
             
 
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 / Dispatch by E3 (DE-CH-DE-AT)
 

Facts:

An Austrian entrepreneur E4 (= last purchaser) orders a machine from his German supplier E3 (=2nd purchaser). The latter in turn orders the machine from the Swiss wholesaler E2 (=1st purchaser). Since the wholesaler E2 does not have the machine in stock, he orders it from the Germanmanufacturer E1 (= first supplier). The German entrepreneur E3 instructs his forwarder with the pickup of the machine from the German manufacturer E1 and subsequent delivery to the Austrian entrepreneur E4.

Brief description of the chain transaction:

  • Registration obligations:
    • The Swiss entrepreneur E2 has to obtain a VAT registration in the country of the 1st entrepreneur E1 (Germany).
    • The German entrepreneur E3 has to obtain a VAT registration in the destination country Austria.

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

  • "Supply 2" from E2 (Switzerland) to E3 (Germany)
    • Assignment of transport or dispatch according to § 3 (6) UStG
    • Zero-rated VAT supply in Germany (E1)
    • Tax exemption pursuant to § 4 (1)(b) UStG in conjunction with § 6a UStG (intra-Community supply)

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

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 row 26/code 81 as taxable (domestic) supply.

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

  • Registration obligations:

    • The Swiss entrepreneur E2 has to obtain a VAT registration in the country of the 1st entrepreneur E1 (Germany) und act with his German VAT identification number towards E1 and E3. The entries listed below are consequently to be included in the German VAT return, ESL and Intrastat SD.

  • 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:
      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 Austrian VAT identification number of the German entrepreneur E3.

    • VAT Return (at the German Tax Office):
      Declaration of the sales transaction as an intra-Community supply in row 20/code 41.

    • EC Sales List (at the German Tax Office):
      Declaration as (intra-Community) supply to the Austrian VAT identification number of the German entrepreneur E3.

    • Intrastat Supplementary Declaration (at the German authority):
      Declaration as dispatch to Austria.

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

  • Registration obligations:

    • The German entrepreneur E3 has to obtain a VAT registration in the destination country Austria and act with his Austrian VAT identification number towards E2 and E4. The entries listed below are consequently to be included in the Austrian VAT return and Intrastat SD.

  • Incoming Invoice:

    • VAT return (at the Austrian Tax Office):
      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 (at the Austrian authority):
      Declaration as arrival from Germany.

  • Outgoing Invoice:

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

    • VAT Return (at the Austrian Tax Office):
      Declaration of the sales transaction as a taxable (domestic) supply and payment of the VAT from this supply to the Austrian Tax Office.

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

  • Incoming Invoice:

    • VAT return:
      The (Austrian) 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:

  • If the German entrepreneur E3 acts with a VAT identification number that is not from a country in which the chain transaction begins (Germany) or ends (Austria), the simplification rules of the triangular transaction can be applied! The prerequisite for this is, however, that the German entrepreneur E3 does not reside in the destination country Austria.

  • 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 Austria. National deviations from the German legislation were also not taken into account in the chain transaction sketch and the brief description!

  • In addition to the entries in the VAT return as stated above, supplies that are not taxable in Germany whose place of supply is outside Germany and which would be subject to VAT if they would be carried out within the country are to be recorded in the German VAT return in line 41/KZ 45.

  • 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

  • With the amendment to the VAT Directive 2006/112/EC of December 2018, from 1.1.2020, new rules will apply to the ascription of dispatch or transport in intra-Community chain transactions. A detailed description of the upcoming changes can be found via the button "Legal situation 2020" in the selection screen. The impact on the chain transaction selected here is shown in the following sketch. As a result, the tax exempt supply shifts so that the German Entrepreneur E3 no longer needs to register in the destination country Austria, when he communicates his German VAT identification number to the Swiss Entrepreneur E2.

 
2020
 
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