Without a tax number, the recipient of an invoice cannot deduct input tax. This therefore only applies to entrepreneurs entitled to deduct input tax. Without a VAT identification number or business identification number, a company cannot identify itself to other companies as an entrepreneur in the intra-Community movement of goods. Once a company has been established, it should therefore be registered for tax purposes as soon as possible. Errors or missing documents or information during the application process lead to a loss of time and/or higher administrative expenses and higher costs. We help you to tackle this process efficiently and at the right time and clarify questions from the tax office for you.
This means that the responsible tax office can easily issue a tax number after checking the documents submitted and following entry in the commercial register. Upon application, a VAT identification number, which is essential for business transactions within the EU, is also issued automatically and without further verification after the tax number has been issued.
Which documents must be submitted?
- multi-page questionnaire from the tax office
- Copy of the articles of association
- Copy of an extract from the commercial register
- Opening balance sheet
- Copy of the identity card of the managing director(s)
- Proof of payment of the share capital to a bank account of the company
- Information on the shareholders
- Possibly other documents such as profit transfer agreement
Employee employed! Receive tax number! What happens next?
Entrepreneurs must register as an employer with the employment agency at the latest when they start an employment relationship. They then receive a company number. Registration with the employers’ liability insurance association is then required. The employer must register employees with the relevant health insurance fund within a short period of time. In certain sectors, such as the construction industry, immediate registration is required before employees are even allowed to start work. Find out more about our payroll accounting services here.
As soon as a company has received a tax number, it is obliged to submit monthly advance VAT returns electronically to the tax office by the 10th of the following month. Upon application and payment of a certain amount of money, a permanent extension of one month is possible, i.e. the advance return does not have to be submitted until the 10th of the month after next. Benefitax will be happy to submit the application and calculate the amount of money for your clients.
The entrepreneur is free to choose the date on which the tax obligations commence within narrow limits. The earliest possible date for this is the date of notarization of the articles of association. The latest possible date is the actual commencement of business activities, provided this is before the entry in the commercial register. However, if business activities are not commenced until after entry in the commercial register, the tax office will request the company to register for tax purposes.
In order to be able to submit advance VAT returns, all receipts and bank transactions must first be recorded for accounting purposes. We do this for you. More about financial accounting.
If you issue invoices to foreign customers, we recommend that you have a VAT report drawn up by us beforehand. Then the invoicing party knows exactly how the invoice should look so that there is no trouble with the customer or the tax office. Subsequent corrections of errors, if possible at all, are embarrassing and expensive.
If there are significant business relationships with the parent company or sister companies abroad, the regulations on transfer prices should be strictly observed. If this is not done, the tax office may later estimate the profits of the German subsidiary and levy heavy surcharges. Find out more about transfer pricing documentation here. We will be happy to advise you.
In the case of shareholders from abroad, the tax office usually requests further documents / information
- Employment contract of the managing director
- Office rental agreement for the company’s own premises. Alternatively: space in your own property.
- Proof that the paid-up share capital is still at the free disposal of the managing director(s)
- Naming a contact person for the company
The tax office may also make unannounced visits to the company’s registered office and, in our experience, this is not just gray theory. The aim of these visits is to establish whether a newly founded company actually exists and whether there is more than just a letterbox at the registered office. The tax office can also request the company’s stationery, marketing documents and the like. This also serves to check whether the company is actually active and does not just exist on paper.
The tax number is only issued once all the requested documents and information have been submitted. We have a lot of experience in tax registration and can therefore often shorten the processing time.
