How TaxPro completely avoided sales taxes at agencies
Initial situation: Tax claim for foreign fees – retroactively for more than three years
An IT expert with British citizenship and residence in Germany had worked for years as a subcontractor in a complex international contractual arrangement for a German company – but on behalf of a Swiss company.
The tax office treated the sales as taxable in the country and retroactively assessed high amounts of VAT .
Only TaxPro was able to bring about a turnaround in this situation through decades of experience in tax law and consistent enforcement against the tax office.
YouTube Video: 3 things the tax office isn't allowed to do (but still does!)
Strategy: Contract analysis, subcontractor argumentation and place of performance
TaxPro analyzed the contract structure through foreign intermediary companies and proved that the services were provided to a client not resident in Switzerland. The decisive factors were the place of performance according to Section 3a of the German VAT Act (UStG) – and proof that the client worked exclusively for the Swiss company.
Result:
The tax assessments for VAT are unlawful
The tax office must bear the entire costs of the proceedings
The ruling is still considered a groundbreaking ruling on the subject of VAT and freelancers who work in Germany through agencies based abroad.
What you should take away from this:
Even if you work abroad, the German tax office may wrongly assume that you are liable to tax
The assessment often depends on complex contractual constellations – TaxPro knows them
Even high VAT claims can be completely eliminated retroactively
TaxPro has successfully defended against VAT claims in numerous similar cases in an international environment – with over 30 years of experience in tax law.
Do you work for international clients and receive mail from the tax office?
Have it checked whether your sales are even subject to tax in Germany.
Contact us now – before incorrect notices are issued.