Section 5: Taxation

§ 18h Procedure for submission of a VAT return for another Member State

(1) A taxable person resident in Germany, who prior to 1 July 2021, carries out transactions in another Member State of the European Union, in accordance with § 3a paragraph 5, for which he is liable for tax and is required to submit VAT returns there, must notify the Federal Central Tax Office, by remote data transmission and using the official data set, if he intends to make use of the separate taxation procedure in accordance with Title XII chapter 6 section 3 of Council Directive 2006/112/EC as amended by Article 5 number 15 of Council Directive 2008/8/EC from 12 February 2008 amending Directive 2006/112/EC in respect of the place of supply of services (OJ L 44 of 20 February 2008, page 23). The use of the procedure, within the meaning of sentence 1, is only permitted to the taxable person on a uniform basis for all those Member States of the European Union in which he has neither a registered office nor a fixed establishment. Notification, in accordance with sentence 1, must be forthcoming prior to the commencement of the taxation period, from the start of which, the taxable person will be making use of the separate taxation procedure. Application of the separate tax procedure may only be cancelled with effect from the start of a taxation period. The Federal Central Tax Office is to be notified electronically of such a cancellation, using the official data set of any cancellation prior to the start of the taxation period to which the said cancellation applies.

(2) If the taxable person does not meet the conditions for using the separate taxation procedure in accordance with paragraph 1, the Federal Central Tax Office shall notify the taxable person of this by means of an administrative act.

(3) A taxable person applying the separate taxation procedure referred to in paragraph 1 must submit the VAT returns he is required to file for this purpose by remote data transmission, and using the official data set, to the Federal Central Tax Office by the 20th day after the end of each taxation period. In this return, he must calculate the tax for the taxation period himself. The calculated tax must be paid to the Federal Central Tax Office.

(4) If the taxable person repeatedly fails to meet his obligations in accordance with paragraph 3 or the obligations to keep records imposed upon him in another Member State of the European Union, in accordance with Article 369k of Council Directive 2006/112/EC as amended by Article 5 number 15 of Council Directive 2008/8/EC from 12 February 2008 amending Directive 2006/112/EC, in respect of the place of supply of services (OJ L 44 of 20 February 2008, page 11) or does not meet such obligations on a timely basis, the Federal Central Tax Office shall exclude him from the separate taxation procedure in accordance with paragraph 1, by means of an administrative act. The exclusion shall be effective as of the taxation period that commences after the date on which the taxable person is notified of such exclusion.

(5) A taxable person shall be deemed to be resident in Germany, within the meaning of paragraph 1 sentence 1, if he has his registered office or his place of management in Germany or, should he be resident in a third country territory, he has a fixed establishment in Germany.

(6) Provided the Federal Central Tax Office is responsible for execution, §§ 30, 80 and 87a and the second section of the third part and the seventh part of the Fiscal Code, as well as the Tax Court Code, are applicable with regard to this procedure.

(7) § 18 paragraph 4f shall apply accordingly.