Organschaft for German VAT
As soon as all of the above criteria are met, an Organschaft for
German VAT purposes comes into existence, and exists until
such time that the criteria are no longer met. Companies cannot
optionally elect to be an Organschaft or not.
The controlling entity is considered to be the sole business for
German VAT purposes. Supplies between Organschaft mem-
bers are disregarded for German VAT purposes, i.e. Intra-group
supplies of goods and services are not subject to VAT. In the
case of an international group of companies, the Organschaft
is limited to the German entities (corporations, partnerships,
branches, etc.) of the group. In this case, the most signifcant of
the entities in Germany from a business point of view is deemed
to be the business liable for VAT.
A German business is normally allocated a single tax reference
number for all taxes including VAT. Foreign businesses also
receive a tax reference number upon registration. Furthermore,
on application, a VAT identifcation number is issued for each
registered business.
Businesses and individual members of an
Organschaft can also request a separate VAT identifcation num-
ber from the tax authorities to be quoted on invoices received
and issued in relation to intra-EC supplies of goods.
EU Forecast
euf:ba.18g:77/nws-01