WARNING - German VAT can be tricky

I'm self-employed and my last two clients have been based in Germany. Though I'm not VAT registered, I have had to include their VAT number on the invoice (UmST is the German for VAT).

If he doesn't ask you to do this it's all fine. If he does then technically you have to enter a VAT return here even if zero VAT will be due. I say technically because they're extremely unlikely to chase you over what would be a zero tax bill(!), it's just the bureaucracy.

If you're just trading on a hobby basis you are probably fine but if it turns into an actual business you need to be careful. EU VAT rules for small businesses are the devil's own work. Google up the VAT MOSS rules.

Posted By: Old Man on April 30th 2016 at 13:36:17


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