The German VAT-code is the result of the transformation of the respective EC-directives on a harmonised system of value added tax in Europe. The very source of the code implies that this is harmoniously imposed in all member countries of the European Community. Unfortunately, the very notion of the harmonisation or rather the approximation of laws in Europe implies that there is only a common system whereas all EC-member states have safe-guarded at least some their legal tradition by enacting a number of particularities which make it virtually impossible to judge the taxability of a certain turnover in a foreign EC-country. Fortunate enough, the sound knowledge and understanding of the system enables you to ask your national tax counsel the right questions and to give you an estimation if his advice on an individual case may be correct.

• VAT on goods
• VAT on services