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• VAT Considerations in Exports from US to Germany

• 
  Steven Chap

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  VAT Considerations in Exports from US to Germany

  I am a new US-based company preparing to sell hair styling accessories to Germany. My customers will be German beauticians, who in turn will sell the products to their German clients.
  
  The German beauticians will order the product from me online. I will have no physical presence in Germany other than a German bank account through which our German customers can pay for their orders (via Uberweisungen). My website is in the U.S.
  
  I have 3 quick questions:
  
  (1) Must I charge VAT to the beauticians, since they are ordering from me in America, and they are selling the products to their German clients?
  
  (2) If I consolidate several orders (from various German beauticians) into a single shipment from the U.S. to a friend in Germany... and my friend simply ships or delivers the separate products to the various beauticians... will I have to charge or pay VAT?
  
  (3) Since I am a small business, do I even have to deal with VAT?
  
  Thanks in advance for any assistance!
  
  • 03 May 2011, 11:15 pm
  Steven Chap wrote: > I am a new US-based company preparing to sell hair styling > accessories to Germany. My customers will be German beauticians, who > in turn will sell the products to their German clients. > > The German beauticians will order the product from me online. I will > have no physical presence in Germany other than a German bank account > through which our German customers can pay for their orders (via > Uberweisungen). My website is in the U.S. > > I have 3 quick questions: > > (1) Must I charge VAT to the beauticians, since they are ordering > from me in America, and they are selling the products to their German > clients? > > (2) If I consolidate several orders (from various German beauticians) > into a single shipment from the U.S. to a friend in Germany... and my > friend simply ships or delivers the separate products to the various > beauticians... will I have to charge or pay VAT? > > (3) Since I am a small business, do I even have to deal with VAT? > > Thanks in advance for any assistance!
• 
  Alexander Baron von Engelhardt    Group moderator

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  Re: VAT Considerations in Exports from US to Germany

  This is the wrong place to ask for such specific legal questions. Best thing to do is contact a tax lawyer in the States. Even when you're "only" a small business, the IRS will not at all have a problem to make you problems. When you cannot afford one, then better not make business abroad.
  Anyhow, good luck.
  
  • 04 May 2011, 3:22 pm
  Alexander Baron von Engelhardt wrote: > This is the wrong place to ask for such specific legal questions. > Best thing to do is contact a tax lawyer in the States. Even when > you're "only" a small business, the IRS will not at all have a > problem to make you problems. When you cannot afford one, then better > not make business abroad. > Anyhow, good luck.
• 
  Steven Chap

  The company name is only visible to registered members.

  Re^2: VAT Considerations in Exports from US to Germany

  Really, an IRS issue? I understand that as a US entity, I'll have to pay taxes in the U.S. My question, though, relates to whether I’ll have to pay VAT taxes in Germany.
  
  Secondly, the issue regarding my potential status as a small business relates to possible VAT exemption thresholds... not to my ability to hire a tax attorney in the States. (Not sure where you got that notion.)
  
  Anyhow, thanks for your help.
  
  
  Alexander Baron von Engelhardt wrote:
  Best thing to do is contact a tax lawyer in the States. Even when you're "only" a small business, the IRS will not at all have a problem to make you problems. When you cannot afford one, then better not make business abroad. Anyhow, good luck.
  
  • 04 May 2011, 6:35 pm
  Steven Chap wrote: > Really, an IRS issue? I understand that as a US entity, I'll have to > pay taxes in the U.S. My question, though, relates to whether I’ll > have to pay VAT taxes in Germany. > > Secondly, the issue regarding my potential status as a small business > relates to possible VAT exemption thresholds... not to my ability to > hire a tax attorney in the States. (Not sure where you got that > notion.) > > Anyhow, thanks for your help. > > > Alexander Baron von Engelhardt wrote: > > Best thing to do is contact a tax lawyer in the States. Even when > > you're "only" a small business, the IRS will not at all have a > > problem to make you problems. When you cannot afford one, then better > > not make business abroad. Anyhow, good luck.
• Post visible to registered members
• 
  Steven Chap

  The company name is only visible to registered members.

  Re^2: VAT Considerations in Exports from US to Germany

  Thank you Ursula for the helpful information!
  By the way, we're not selling cosmetics, but rather hair accessories.
  
  • 05 May 2011, 01:30 am
  Steven Chap wrote: > Thank you Ursula for the helpful information! > By the way, we're not selling cosmetics, but rather hair accessories.