Section 5: Taxation

§ 16 Tax calculation, tax period and individual taxation

(1) Tax is to be calculated on the agreed consideration, provided that § 20 does not apply. The tax period shall be the calendar year. The basis for the calculation shall be assumed to be the total sum of all transactions in accordance with § 1 paragraph 1 numbers 1 and 5, provided that the tax on said transactions has arisen during the tax period and a tax liability is given. The VAT owed, according to § 6a paragraph 4 sentence 2, § 14c, as well as § 17 paragraph 1 sentence 6, shall be added to the tax.

(1a) If a taxable person not resident in Community territory applies § 18 paragraph 4c, the calendar quarter is the tax period. The basis for the calculation shall be assumed to be the total sum of all transactions, in accordance with § 3a paragraph 5, which are taxable in Community territory, provided that the tax on said transactions has arisen during the tax period and a tax liability is given. Paragraph 2 shall not apply.

(1b) If a taxable person resident in Community territory (§ 13b paragraph 7 sentence 2) applies § 18 paragraph 4c, the calendar quarter is the tax period. The basis for the calculation shall be assumed to be the total sum of all transactions, in accordance with § 3a paragraph 5, which are taxable in Germany, provided that the tax on said transactions has arisen during the tax period and a tax liability is given. Paragraph 2 shall not apply.

(1c) If a taxable person not resident in the Community territory applies § 18i, the calendar quarter is the tax period. If the participation in the in the procedure of § 18i has been notified in Germany, the basis of the calculation of the tax shall be the total sum of the supply of services to recipients as mentioned in § 3a paragraph 5 sentence 1, which are subject to VAT in the Community territory, provided that the tax on said transactions has arisen during the tax period and a tax liability is given. If participation in the procedure of § 18i has been notified in another Member State of the European Union, the basis of the calculation of the tax shall be the total sum of the supply of services mentioned in § 3a paragraph 5 sentence 1, which are subject to VAT in Germany, provided that the tax on said transactions has arisen during the tax period and a tax liability is given. Paragraph 2 shall not apply.

(1d) If the taxable person applies § 18j, the calendar quarter is the tax period. If participation in the procedure of § 18j has been notified in Germany, the basis of the calculation of the tax shall be the total sum of the supply of goods as mentioned in § 3 paragraph 3a sentence 1 within a Member State and the intra-Community distance sales as mentioned in § 3c paragraph 1 sentences 2 and 3, which are subject to VAT in the Community territory, as well as the supply of services to recipients as mentioned in § 3a paragraph 5 sentence 1, which are subject to VAT in another Member State of the European Union, provided that the tax on said transactions has arisen during the tax period and a tax liability is given. If participation in the procedure of § 18j has been notified in another Member State of the European Union, the basis of the calculation of the tax shall be the total sum of the supply of goods as mentioned in § 3 paragraph 3a sentence 1 within a Member State, the intra-Community distance sales as mentioned in § 3c paragraph 1 sentences 2 and 3 and the supply of services to recipients as mentioned in § 3a paragraph 5 sentence 1, which are subject to VAT in Germany, provided that the tax on said transactions has arisen during the tax period and a tax liability is given. Paragraph 2 shall not apply.

(1e) If a taxable person or an agent engaged by him applies § 18k, the calendar month is the tax period. If participation in the procedure of § 18k has been notified in Germany, the basis of the calculation of the tax shall be the total sum of the distance sales as mentioned in § 3 paragraph 3a sentence 2 and § 3c paragraphs 2 and 3, which are subject to VAT in the Community territory, provided that the tax on said transactions has arisen during the tax period and a tax liability is given. If participation in the procedure of § 18k has been notified in another Member State of the European Union, the basis of the calculation of the tax shall be the total sum of the distance sales as mentioned in § 3 paragraph 3a sentence 2 and § 3c paragraphs 2 and 3, which are subject to VAT in Germany, provided that the tax on said transactions has arisen during the tax period and a tax liability is given. Paragraph 2 shall not apply.

(2) Subject to § 18 paragraph 9 sentence 3, the input VAT deductible within the tax period according to § 15 is to be offset against the tax calculated according to paragraph 1. § 15a shall be taken into account.

(3) If the taxable person carries out his commercial or professional activities only for a part of the calendar year, the said partial year shall replace the calendar year.

(4) By way of derogation of paragraphs 1, 2 and 3, the tax office may determine a shorter tax period, if the receipt of tax might be at risk or the taxable person agrees to it.

(5) By way of derogation of paragraph 1, with respect to passenger transport on non-scheduled services using buses not licensed in Germany, the responsible customs authority shall calculate tax (individual taxation of passenger transport), when a border to a third country territory is crossed. The responsible customs authority shall be the customs authority of entry or the customs authority of departure at which the bus arrives in Germany or from which it leaves Germany. The responsible customs authority shall deal with the individual taxation of passenger transport on behalf of the tax office in the district in which the customs office is located (responsible tax office). Paragraph 2 and § 19 paragraph 1 shall not apply to the individual taxation of passenger transport.

(5a) By way of derogation of paragraph 1, the tax is to be calculated on each individual taxable acquisition with respect to an intra-Community acquisition of new vehicles by purchasers, other than those persons referred to in § 1a paragraph 1 number 2 (individual taxation of vehicles).

(5b) Upon the request of the taxable person, the tax is to be calculated in accordance with paragraphs 1 and 2, in place of the individual taxation of passenger transport (paragraph 5), following the expiry of the tax period. Paragraphs 3 and 4 shall apply accordingly.

(6) In order to calculate the tax and the deductible input VAT, any amounts denominated in foreign currency are to be converted into Euro using the average exchange rates as published by the Federal Ministry of Finance for the month in which the supply was carried out, or the consideration or a part thereof was received prior to execution of the supply (§ 13 paragraph 1) number 1 lit. a sentence 4). If the taxable person executing the supply is permitted to calculate the tax based on the consideration received (§ 20), said consideration is to be converted using the average exchange rate for the month in which it was received. The tax office may permit the amounts to be converted using the daily exchange rate as evidenced by a notification from a bank or by a foreign exchange rate sheet. If a taxable person applies § 18 paragraph 4c or §§ 18i, 18j or §18k, when calculating the tax, he must convert the amounts denominated in foreign currency using the exchange rates determined by the European Central Bank applicable for the last day of the tax period in accordance with paragraph 1a sentence 1, paragraph 1b sentence 1, paragraph 1c sentence 1, paragraph 1d sentence 1, paragraph 1e sentence 1. If foreign exchange rates have not been determined for the days referred to in sentence 4, the taxable person must convert the tax using the foreign exchange rates determined by the European Central Bank for the day following the expiry of the tax period in accordance with paragraph 1a sentence 1, paragraph 1b sentence 1, paragraph 1c sentence 1, paragraph 1d sentence 1 or paragraph 1e sentence 1.

(7) Section 11 (5) and section 21 (2) shall apply to import VAT.