Field help:
(2018)
Operating income exempt from VAT
Enter any operating income exempt from or not subject to VAT, as listed in section 4 Value Added Tax Act (§4 UStG):
- Exempt from VAT in accordance with section 4 Value Added Tax Act (§4 UStG) are, for example, interest, rental income as well as the services of doctors, dentists, naturopaths, physiotherapists, midwives, insurance representatives and brokers, building society representatives, credit intermediaries and from voluntary work for corporations under public law.
- Not subject to VAT are, for example, foreign sales, income as compensation, from insurance benefits, compensation, reminder fees received and interest on arrears, public subsidies such as forestry subsidies, subsidies for land consolidation or other subsidies.
Furthermore operating income with reverse charge tax liability (section 13b Value Added Tax Act (§ 13b UStG)) for which the recipient of the service owes the VAT due to the so-called reverse charge tax liability (section 13b Value Added Tax Act (§ 13b UStG)) must be stated here. In this case, as a service provider you do not have to pay the VAT to the tax office and are therefore not allowed to show it in your invoice to the client. The reverse tax liability applies to the following services:
- Services subject to land transfer tax law (Grunderwerbssteuergesetz), in particular
- Sale of developed and undeveloped land,
- Order and transfer of leaseholds,
- Transfer of co-ownership interests in land,
- Delivery of buildings erected on third-party land at the end of the rental or lease period (land leasehold).
- Construction services that you perform for another contractor, i.e. for work deliveries and other services that serve the construction, repair, maintenance, modification or removal of buildings. The reversal of tax liability only applies to companies in the construction sector, i.e. to tradespeople and companies that provide construction services themselves. The payment obligation continues to exist if such companies purchase services for their private use.
A reversed tax liability has existed for a long time for entrepreneurs and legal entities under public law as a recipient of
- Work-related deliveries and other services of an entrepreneur resident abroad.
- Deliveries of goods assigned by way of security by the collateral provider to the collateral taker
outside of insolvency proceedings.
