Section 5: Taxation

§ 20 Tax calculation based on received consideration

Upon request, the tax authority may permit a taxable person,

1. whose total turnover (§ 19 paragraph 3) in the previous year was no more than Euro 800,000, or

2. is, pursuant to § 148 of the Fiscal Code, exempt from the obligation to keep an accounting and to regularly prepare financial statements based on annual inventory takings, or

3. if he executes transactions as part of an activity as a member of an independent profession, within the meaning of § 18 paragraph 1 number 1 of the Income Tax Act or

4. who is a legal entity under public law provided he does not voluntarily keep the records and regularly does accounting based on annual inventory or is legally obliged to do so.

to calculate VAT not based on the agreed consideration (§ 16 paragraph 1 sentence 1), but instead based on the total consideration received. Where the exemption according to sentence 1 number 2 only extends to individual operations of the taxable person and the precondition under sentence 1 number 1 is not met, the permission to calculate VAT, based on the total consideration received, is to be limited to such operations. If the taxable person changes the tax calculation method he uses, transactions may not be included twice nor remain untaxed.