Value added tax

With an annual volume approaching 200 billion euro, VAT is the highest yielding and therefore the most important tax in Germany. In addition to this, VAT law is highly complex, meaning that this field assumes an important position within the PETERSEN HARDRAHT PRUGGMAYER advice practice.

The potential for fraud that still exists in the VAT system in force has in the past resulted in a host of legislative measures. Companies are increasingly frequently affected by the partially expanded reverse charge system and by an increased number of special VAT audits. The high level of formalisation and the complexity of VAT legislation carries the risk for every company of having to pay additional tax payments within the scope of special VAT audits. The state receivables from these recoveries alone amount to 4 billion euro each year.

The goal of any company must be to control supply and service relationships in such a way that the applicable input VAT is paid in the full amount.

The advice provided by PETERSEN HARDRAHT PRUGGMAYER covers the entire scope of VAT: this begins with the practical application of VAT legislation as part of everyday business, and includes everything from the shaping of supply and service relationships to the provision of support during special VAT audits and during objection and litigation proceedings before the fiscal courts, the Federal Fiscal Court and the European Court of Justice.

As specialists, we draw up understandable working instructions for our clients and tried-and-tested guidelines for the daily management of VAT issues. Furthermore, we advise companies during the introduction and implementation of internal accounting processes with a view to avoiding VAT risks. We draft reports on national and cross-border supply and service relationships and provide advice regarding the development of these relationships from a tax perspective.

Our range of services also includes the optimisation of the company-specific input tax key and drawing up tailor-made contracts from a VAT perspective, including the formulation of corresponding tax clauses. In addition to this we also assist our clients in the establishment of VAT tax group structures, in particular in the case of holding companies.

The expertise of PETERSEN HARDRAHT PRUGGMAYER is also frequently called upon by tax consultants and other lawyers regarding VAT issues, whenever it appears that more in-depth consultation is required regarding specialist aspects of VAT law. Here it goes without saying that we take every possible measure to safeguard the direct client relationships between the tax consultants or other lawyers and their clients.