Anyone liable to pay tax also has the right to save tax. (Helmut Schmidt, former German Chancellor)

As the most profitable tax in Germany, everyone is familiar with VAT. Everyone pays it and yet no-one likes it. In the past VAT was a straightforward transitory item in many enterprises. The potential for tax fraud is greater here than in any other fiscal sector. The response to this is a complex and almost impenetrable policy of German and European legislators, which is subject to constant evolution with new court judgements, complicated EU provisions and reporting obligations. For companies this entails significant financial risks due to high administrative costs and particularly due to accounting errors.

Several billions in taxes are recovered in Germany every year through electronic audits and special VAT investigations. The increasing formalisation of VAT involves considerable risks for every company. As VAT procedures are normally bulk transactions, a small error in this field can have major and sometimes existential consequences.

Due to increasing globalisation of added-value and ever-growing global networking and digitalisation, VAT has become the most dangerous minefield for companies. Yet companies must give in to the reality of production based on the division of labour, including across borders, even if the financial authorities are constantly increasing the barely attainable documentation and verification obligations for all international transactions.

Our VAT clients benefit from the comprehensive and industry-specific experience of DanRevision Group. Our professional consultation protects companies from financial risks that can arise, for example, from insufficient evidence or inaccurate accounts. We also assist you with the correct implementation of VAT matters in your ERP system. Furthermore, we examine VAT issues, as well as the optimisation of administrative processes and internal controlling in relation to VAT in your company. So we do more than simply clarify somewhat complex individual issues: we also advise on the efficient execution of VAT calculation. The systematic standardisation of business processes across national borders helps to reduce complexity and thus risk.

We give you an overview of the tax requirements, also as regards VAT and/or the remuneration procedure. We check the tax requirements of an invoice and ensure timely submission.

We provide you with solid support in preparing current fact sheets and checklists (e.g. on burden of proof for cross-border deliveries, invoice requirements, etc.) and coordinating VAT registrations in other EU countries. We can provide advice and support for compliance with VAT evidence and reporting obligations (recapitulative statement etc.), accompany you through special VAT audits conducted by the financial authorities and also handle the appeal and complaint procedure, if necessary, where this concerns VAT.