This phenomenon always comes into play when a company has not created any added value in the value chain. The invoiced sales tax has already been reported to the tax office; the amount is higher than the sales tax invoiced.
In practice, input tax and sales tax are kept in two different accounts. This then means that tax is to be found on the account from the sale, but less is received from the sale on the account of VAT. The account showing the lower balance will then be balanced accordingly. The resulting input tax surplus is compensated by the tax office.
Tax return for sales tax: which form must be used
Regardless of the pre-registration for VAT, companies must submit a VAT return every year. This must be sent electronically to the responsible tax office. This is important with online tax filing.
Tax return for sales tax is mandatory
The tax return must be submitted by July 31 of the following year. Anyone who uses the help of a tax advisor has until the end of February of the year after next.
A wide variety of attachments and forms must be submitted, including:
- Form USt 2A: This form must be filled out and submitted by all entrepreneurs who are based in Germany.
- Annex UR: Anyone who exported goods that are exempt from sales tax must use this annex.
- Annex UN: Entrepreneurs who are based abroad and make deliveries to end users in the community must fill out this annex.
Anyone looking for a form for sales tax and the corresponding declaration can be found as a download on the Internet platform of the Federal Ministry of Finance. The Tax Forms menu item takes you to various folders. The documents for sales tax can be found in the corresponding folder.
In addition to the above-mentioned forms, the Federal Ministry of Finance provides two other helpful forms:
- USt 2 E: Instructions for the VAT return
- USt 4 E: Instructions for Appendix UR
In order to fill out the sales tax return, you need your tax number. In addition, you need to know which sales you made at the general tax rate and which you earned at the reduced tax rate.
In lines 61 to 71 of Annex USt 2 A, the deductible input tax amounts are to be entered. In lines 91 to 109 sales taxes must be entered, which is still to be paid. Reduced tax rate: Only 7% sales tax is charged on various goods. This applies, for example, to food, books, newspapers and art objects. The standard tax rate of 19% is levied on all other products.
This applies to small business owners and freelancers
Sales tax for a small business: Special regulations apply here. Small business owners, start-ups, and freelancers enjoy some advantages. According to §§ 18 and 19 UStG, some exceptions apply to the handling of sales tax for a small business.