Help Chain Transaction Calculator 2020 Germany

Stress in connection with Chain Transactions

Help with the Chain Transaction Calculator 2024 - Germany

1) Legal Assessment and Standard Conditions

Legal Assessment:
The assessment of the chain transactions illustrated herein was made from the perspective of the German legal provisions or from the point of view of the German tax authorities (Value Added Tax Application Decree / UStAE). I.e. the hypothetical case was assumed that the German law would apply in all Member States and partly in the selected third country. Since all Member States implement the Directive on the VAT system of the EU with their national value added tax laws, the value added tax laws are actually almost the same. There are, however, slight differences which will be not described in detail here. Attention is, however, drawn to some of these differences in the notes (at the end of the detailed descriptions). Special provisions that apply when importing into a member state (such as a relocation of the place of supply) are not taken into account in the examples with export to a third country.
It should be noted that until 31 December 2019, the administrative opinion was partly in contradiction with the jurisprudence of the European Court of Justice. According to ECJ jurisprudence, the assignment decision of the "moved supply" (this is the supply which may be tax exempt) should have been based on which entrepreneur has the right to dispose the goods as owner when crossing the border. The German administrative view, on the other hand, was based exclusively on which of the entrepreneurs was responsible for the transport or dispatch.

With the introduction of the quick fixes at EU level on 1 January 2020, regulations on chain transactions were included in the VAT Directive for the first time, which were incorporated into the German Value Added Tax Act (UStG) with the Annual Tax Act 2019. Further information on the changes can be found under New legal situation, chain-transaction.de, UStG, VAT Directive. These changes were incorporated into the UStAE - late but nevertheless - on 25.04.2023.

Standard Conditions:
The evaluations of the chain transaction examples are each based on the following listed standard conditions:

The supplies constitute supplies of goods (and not services) to entrepreneurs.
The delivered goods are subject to the standard tax rate (no books, food, etc.) and are not subject to any special provisions (no motor vehicles, garbage, raw materials etc.). Temporary reductions in the VAT rate in other Member States due to the Corona crisis are therefore not taken into account in the chain transaction calculator.
The respective entrepreneurs of the Member States act with the VAT identification number of their own country (unless something to the contrary is noted in the examples).
When applying the simplification rules for triangular transactions, the entrepreneurs have no subsidiary and no residence or registered office in one of the other countries involved.
The entrepreneur who arranges the transport has the right to dispose the goods as owner at the time of the border crossing and he bears the risk of loss of the goods.
In cases of third country reference, the declaration for free circulation or the export declaration is made by the entrepreneur who arranges the transport, always in the country of destination.
No split transport takes place (a split transport obtains when two or more entrepreneurs divide up the transport route between each other).
There are no transactions on a commission basis.
There is no delivery to a consignment warehouse or a bonded warehouse.
The entrepreneurs are neither exempt from VAT nor subject to a flat rate.
When claiming tax exemption, the entrepreneurs are in possession of the required proofs, for instance export certificates, entry certificates, etc. (see also Value Added Tax Implementing Regulation (UStDV)).
Entrepreneurs who act as suppliers by using a VAT identificatiohn number issued by the Member State of departure have proof required under 3.14. (10) UStAE (of the VAT identification number communicated to the supplier before the supply). This condition applies to supplies from 25.04.2023 (= date of amendment of the UStAE).

Additional standard conditions for B2C examples:

The entrepreneur who delivers to the private individual is registered for the EU-OSS system (§ 18j UStG) in the case of intra-Community chain transactions.
Entrepreneurs who make an intra-Community distance sale do not fall under the exemption of § 3c (4) UStG (< 10,000.- EUR).
In the case of chain transactions with import from a third country, a value of goods of more than EUR 150 is assumed in each case. In the additional explanations for a value of goods up to EUR 150 and application of the IOSS system, it is assumed that the entrepreneur delivering to the private individual is registered for the IOSS system (§ 18k UStG).
The purchaser designated as a private individual is a consignee referred to in the first sentence of § 3a (5) UStG or a person referred to in § 1a (3) no. 1 UStG who neither exceeds nor waives the relevant acquisition threshold.
No electronic interface or marketplace (pursuant to § 18i UStG) is involved in the chain transactions.

You can see from these listed conditions that the evaluations of the chain transaction calculator cannot replace a tax advice since only standard situations were evaluated. Even just a slight deviation from the standard situation can lead to a completely different tax assessment. Likewise, the consultation on how to simplify the tax consequences of a chain transaction can only be performed by a tax consultant who is informed of all the details in the course of the consultation. Please note the Terms of Use and the Disclaimer of Liability of this website.

2) Selection Screen

Selection "Country of the 1st entrepreneur (E1)":
The entrepreneur E1 represents the entrepreneur who has the right to dispose of the goods at the beginning of the chain transaction – thus in general, the manufacturer or wholesaler. By clicking on the corresponding button, select the country in which the goods (and therefore entrepreneur E1) are located at the beginning of the chain transaction. If the desired country is not available for selection, you will find more information via the "other countries" button. Should the goods not be located in the country in which entrepreneur E1 has their headquarters (i.e. in a foreign warehouse of the entrepreneur) at the beginning of the chain transaction, the country of the warehouse is to be selected. The entrepreneur E1 must be registered for value added tax purposes in the country of the foreign warehouse and the corresponding declarations (VAT returns, recapitulative statements, intrastat supplementary declarations) must be made in this country. It must, however, be verified that all the standard conditions of the chain transaction calculator are met in this case (especially in the case of triangular transactions).
Selection "Country of the 2nd entrepreneur (E2)":
The entrepreneur E2 represents the entrepreneur who has ordered the goods from entrepreneur E1 and resells them to entrepreneur E3. He thus receives an incoming invoice from entrepreneur E1 and provides an outgoing invoice to entrepreneur E3. By clicking on the corresponding button, select the country in which entrepreneur E2 has their headquarters. If the desired country is not available for selection, you will find more information via the "other countries" button.
Selection "Country of the 3rd entrepreneur (E3)":
The entrepreneur E3 represents the entrepreneur who has ordered the goods from entrepreneur E2 and (if it is a four-tiered chain transaction) resells them to entrepreneur E4. However, if it is a 3-tiered chain transaction, then entrepreneur E3 (or the private individual P3) is the last in the series and also the recipient (= last purchaser) of the goods. By clicking on the corresponding button, select the country in which entrepreneur E3 (or P3) has their headquarters. If the desired country is not available for selection, you will find more information via the „other countries" button.
Selection „Country of the 4th entrepreneur (E4)":
In case of a 3-tiered chain transaction, click on the button "no 4th Country". In a 4-tiered chain transaction, entrepreneur E4 represents the entrepreneur (or the private individual) who has ordered the goods from entrepreneur E3. Entrepreneur E4 (or the private individual P4) is the last in the series and also the recipient of the goods. By clicking on the corresponding button, select the country in which entrepreneur E4 (or P4) has their headquarters. If the desired country is not available for selection, you will find more information via the "other countries" button.
Selection "Initiator of transport or dispatch":
For the evaluation of a chain transaction, it is necessary to know which one of the entrepreneurs arranges the transport (i.e. which one of the entrepreneurs transports the goods by private truck or commissions a trucking company with the dispatch). Where a dispatch is concerned, it is certainly significant to know which entrepreneur commissioned the freight forwarder as opposed to which entrepreneur bears the cost of the freight forwarding, since this allows one to derive which entrepreneur has the right to dispose of the goods at what point. Consequently, the transition of the right of disposal forms the basis on which supplies could enjoy tax exemption (if all requirements are met), the evaluation of the chain transaction may be significantly changed by selecting another "initiator of transport or dispatch".
- Selection E1, E2, E3 or E4:
  Clicking on one of these buttons takes you to the standard cases where E1, E2, E3 or E4 initiate the transport. If E1 or E2 initiate the shipment, the dispatch is assigned to the supply between E1 and E2. If E3 is selected, the dispatch is assigned to the 2nd supply (E2 to E3) and if E4 is selected, the dispatch is assigned to the 3rd supply (E3 to E4). However, there are also examples in which the dispatch assignment is automatically moved one position to the right. You can find detailed information on the assignment of the dispatch or transport at www.chain-transaction.de. In the B2C examples, the last customer is a private individual (P3 or P4).
- Additional Selection "as supplier":
  If an intermediary operator (E2 or E3) arranges the transport, there is an option that applies uniformly to all member states due to the quick fixes. This option can be exercised by the intermediary operator using the VAT identification number of the country of departure. If "E2 as supplier" is selected, the dispatch is assigned to the 2nd supply (instead of the 1st supply) and, if "E3 as supplier" is selected, to the 3rd supply (instead of the 2. supply). The selection button "as supplier" is only visible for those chain transaction examples where this option can be exercised. By clicking the button several times, you can toggle between the two options. You can find detailed information about this option here.
After a little practice you will be able to glean from the chain transaction sketch whether the selected chain transaction entails registration obligations (see description of the sketch). And this is exactly where you will appreciate the chain transaction calculator, because through just a few clicks (click on different transport initiators) you can see at a glance which entrepreneur must arrange the transport so that no or as few as possible registration obligations arise. Registered visitors will also find up to two alternative examples at the end of the chain transaction evaluations in the form of additional chain transaction sketches.
Button „B2C“ (Requires a Plus or Site licence):
This function enables the evaluation of chain transactions where the last customer is a private individual. In addition to the fact that in these B2C examples neither triangular transaction rules are applicable (at least according to German law) nor intra-Community supplies to a private individual are possible, the chain transaction evaluations show in each case whether a distance sale according to the legal definition exists and whether or under which circumstances a one-stop-shop (EU-OSS or IOSS) can be claimed. Please also note the additional standard conditions for B2C examples in connection with these examples.
Button „Law 2019“ / „Law 2020“:
In the event of extensive changes in the law, the old chain transaction calculator is frozen and remains available to registered visitors. By clicking on the button "Law 2019" or "Law 2020" you will be taken to the corresponding evaluation according to the old legal situation and can either continue working in the old chain transaction calculator or switch back to the chain transaction calculator 2024 by clicking on the button "Current legal situation".
Please note that we are constantly working on the development of new functions or other improvements in the current chain transaction calculator, but these have no influence on archived chain transaction calculators.
Please note that we are constantly working on the development of new functions, improvements and corrections in the current chain transaction calculator, but these have no influence on archived chain transaction calculators. For this reason, you will not yet find any archived examples of the B2C examples, as the B2C selection was integrated in July 2021.

3) Chain transaction sketch

which supply is possibly tax-exempt (IC-supply or export-supply)
which supplies are subject to the value added tax of which country
registration obligations of the individual entrepreneurs
which entrepreneur with which VAT identification number acts or has to act
(In the chain transaction sketches "VAT identification number" is abbreviated to "VAT No.").

Entrepreneur Square:
With the exception of the entrepreneur arranging the transport, there is a black-framed square for each of the entrepreneurs. The square of the transport initiating entrepreneur is framed red in the standard cases and green in the alternative examples to avoid confusion.

The squares contain an inscription of up to 3 lines:

1st line:
Here you find the definition (E1 to E4/P4) of the respective entrepreneur.
2nd line:
Here is the country of the respective entrepreneur, regardless of the country in which the supply is taxable. For the first and last entrepreneur of the series, this country constitutes both the beginning and end of the movement of goods. From the countries of the entrepreneurs in the middle (1st and 2nd purchaser or recipient) one recognizes the invoicing path or sequence. The countries of these purchasers are not connected to the physical movement of goods.
3rd line:
In those cases where an entrepreneur must operate with a foreign VAT identification number, this shows which VAT identification number they must operate with (e.g. Austrian VAT identification number). This is equivalent to a value added tax registration obligation in that country (e.g. Austria).

Arrows:
The short arrows represent the invoicing sequence, wherein the possibly tax-exempt supply (IC-supply or export-supply) can be recognized through a bold arrow (the determination of whether a supply could be tax-exempt or not is described under www.chain-transaction.de).
The long arrow represents the physical movement of goods.
Arrow Texts:
Each of the short arrows corresponds to an invoice. The texts above these arrows show which VAT (of which country) must be indicated in the respective invoices or whether the invoice is tax-exempt (IC-supply or export-supply). In those cases where the supply is subject to VAT in the third country (and not tax-exempt), the aforementioned text is missing.
The long arrow indicates the physical movement of goods. Above the arrow one can see which entrepreneur arranges the transport and below the arrow one can see (if applicable) which entrepreneur makes the declaration for free circulation of the goods.

4) Brief description (only for registered visitors):

all registration obligations
for each individual "supply" (= invoice), it is described whether it is a possibly tax-exempt supply - or not - and in which country it is taxable
the paragraph under which a supply is exempt,
or why a potentially exempt supply is exceptionally not exempt (e.g. § 6 para. 1 Nr. 3 b) UStG),
why or in which case there is no relocation of the place of supply according to § 3 para. 8 UStG,
which entrepreneur is entitled to deduct input tax from the title of the import VAT and the legal consequences where another entrepreneur makes the declaration for free circulation,
notes in case of shift of the moved supply (the possibly tax-exempt supply) (§ 3 para. 6a sentence 4 UStG),
Notes on the application of the simplification rules for triangular transactions (§ 25b UStG).

5) Detailed description from the perspective of individual entrepreneurs:

Registration obligations including information about which VAT identification number must be used towards the respective supplier and customer.
Incoming Invoice:

Value added tax return:
Information about which country (or in exceptional cases, which countries) the VAT return has to be filed in and which registrations must be done. In those cases where the VAT return is to be filed with the German tax office, the respective identification numbers of the monthly VAT return are stated as well.
Intrastat supplementary declaration:
Information on the country in which the Intrastat reporting is to be done and which country is to be indicated as country of dispatch. In each case it is assumed that the entrepreneur is required to report due to their turnover figures, which are currently in Germany EUR 800,000.-.

Outgoing Invoice:

Invoicing:
Exact description of whether and which VAT (of which country) must be indicated in the respective invoices or whether an invoice is tax-exempt (IC-supply or export-supply), including instructions on which features and details must appear on the invoice in connection with the tax exemption. In connection with the B2C examples, it should also be noted that an entrepreneur is free to issue an invoice to a private individual as a gross invoice without stating the VAT amount.
Value added tax return:
Information about which country (or in exceptional cases, which countries) the VAT return has to be filed in and which registrations must be done. In those cases where the VAT return is to be filed with the German tax office, the respective identification numbers of the monthly VAT return are stated as well.
EC sales list (Recapitulative statement):
Information about which country the EC sales list has to be filed in and which declarations must be done.
Intrastat supplementary declaration:
Information on the country in which the Intrastat reporting is to be done and which country is to be indicated as country of destination. Notes on the reporting obligations applicable from 01.01.2022 due to the EBS Directive. In each case it is assumed that the entrepreneur is required to report due to their turnover figures, which are currently in Germany EUR 500,000.-.

Notes:

The notes contain additional valuable information, such as

Different legal assessments of other Member States in triangular transactions
Legal consequences of using a wrong VAT identification number (double purchase)
Suggestions for obtaining a tax exemption
Note if the simplification rules of the triangular transaction are not applicable

6) Alternative examples (only for registered visitors):

Chain transaction becomes a triangular transaction
Here you can see how a chain transaction can be treated as a triangular transaction by using a different VAT identification number.
Triangular transaction becomes a chain transaction
Here you can see the legal consequence if the simplification rules for triangular transactions are not applied (this is for example required if the purchaser is established in the country of destination).
Intermediary operator with VAT identification number of the country of departure
Here you can see the legal consequence if the intermediary operator uses a VAT identification number of the country of departure instead of a VAT identification number of the country of destination (this alternative example can also be called up via the button "as supplier").
Intermediary operator with VAT identification number of the country of destination
Here you can see the legal consequence if the intermediary operator uses a VAT identification number of the country of destination instead of a VAT identification number of the country of departure.
Indirect involvement of the supplier in the transport
Irrespective of the VAT registration number used, a different assessment (intra-Community distance sales) may occur in B2C examples if the second last purchaser intervenes indirectly in the transport or dispatch of the goods.

7) Printable version (only available for registered users):

8) Personalized print version (only for registered visitors with Plus or Site licence):

here

one

9) Editable Word document (only available for registered users):

10) Terms of Use (as of 01 July 2023):

These terms of use apply for the free access to the chain transaction calculator (www.chaintransaction-calculator.de) including supplementary sites (e.g. www.chain-transaction.de, www.triangular-transaction.de). For the paid access, on the other hand, the usage contract that is concluded in the course of registration applies.
By using the chain transaction calculator (in the free access area) you agree to these Terms of Use. Please read these carefully. The operator of this website may change or modify these Terms of Use at any time. You should thus review these Terms of Use regularly. If you do not agree to the amended terms, you must stop using the chain transaction calculator and you are not allowed to make any more queries.
Definition "chain transaction calculator": The chain transaction calculator is a web-based service tool on the website www.chaintransaction-calculator.de (as well as the linked info sites),that issues an assessment of the value added tax consequences from the perspective of the German legal norms or from the point of view of the German tax authorities (Value Added Tax Application Decree / UStAE) upon entering the countries involved in a three- or four-tiered chain transaction. This evaluation is thus based on the hypothetical case that the German laws apply in all Member States and partly in the selected third country. Please also note the standard conditions the chain transactions are based on. The standard conditions can be changed by the operator of the website at any time (e.g. to comply with changes in law).
Certified Public Accountants, tax consultants and members of other professions who are authorized to advise clients in connection with chain transactions, undertake to merely consult the evaluations of this chain transaction calculator as a support for their own evaluations and conduct the final verification for accuracy themselves. A passing on of the evaluations of the chain transaction calculator to clients is prohibited and constitutes especially a copyright infringement (A passing on is only allowed if a usage contract was concluded as part of the paid full access).
Users who are not covered by the professional groups mentioned in the previous point must have a tax consultant check the evaluations of this chain transaction calculator before they take any business decisions related thereto (Since several thousand examples were evaluated in the chain transaction calculator with IT support, it must be expected that an error may have crept in in some individual instances). A passing on of the evaluations of the chain transaction calculator to clients is prohibited and constitutes a copyright infringement (A passing on is only allowed if a usage contract was concluded as part of the paid full access).
All users of the chain transaction calculator accept the disclaimer of liability cited subsequent to the Terms of Use.
These terms of use shall be subject to Austrian law exclusively excluding the conflict rules and the UN Sales Convention.
All disputes arising from these Terms of Use as well as from the use of the website www.chaintransaction-calculator.de (as well as the linked info sites) are subject to the exclusive jurisdiction of the competent court for commercial matters in Vienna (Austria).
Severability Clause: Should one or several provisions of these Terms of Use turn out to be invalid in whole or in part, or if any loophole should exist, the validity of the remaining provisions of this contract shall not be affected. The contractual parties are obliged to replace the invalid provision or to fill the loophole with a valid provision that comes as close as possible to the intended content of this agreement.

11) Disclaimer of Liability:

The chain transaction calculator contains several thousand chain transaction examples that have been generated in an IT supported fashion. Due to the large number of examples, a final check of all examples by the operator of this website is impossible and both software technical errors and errors caused by differing legal opinion must therefore be taken into account.
The website is a translation of a German-language website. Hence the risk of translation errors must be taken into account.
Users who include contents and results of the website in written or oral appraisals for their clients undertake to check these contents and results for their accuracy beforehand and to correct them if necessary and therefore assume all liability towards these clients themselves and without recourse against the operator of this website. Users without an appropriate professional qualification who nevertheless provide expert opinions in connection with chain transactions for their clients, undertake to have the contents to be used by the chain transaction calculator and its results checked beforehand by a tax consultant with the required professional qualification.
Users who employ the website content for their own business, undertake to have this content checked for accuracy by a tax consultant before making business decisions based on these contents. Any possible liability claim can thus only be directed against the tax consultant who has done this verification for correctness.
It is hereby also expressly noted that the evaluations of the chain transaction calculator – even if these are flawless – cannot replace a tax consultancy as only standard situations were evaluated (without interruption of delivery, without commission business, without deviating declarant for free circulation, etc.). For a complete list of the standard conditions, please see point 1) on this side. Even just a slight deviation from the standard situation can lead to a completely different tax assessment. Likewise, the consultancy on how to simplify the tax consequences of a chain transaction may only be done by a tax consultant, who was given all the details in the course of the consultation.
The exclusion of liability as well as the listed obligations of users also apply to the excerpts from legal norms provided as part of this website, including supplements (e.g. sketches).
Due to the reasons listed above and the obligations of the users, no liability is accepted by the operator of the websites www.chaintransaction-calculator.de , www.chain-transaction.de and www.triangular-transaction.de (as well as other linked info sites). The user expressly waives any recourse to the operator of this website as part of a liability!
This website contains links to external sites. No liability is assumed for the content of these external websites.

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