(One generalization we know is incorrect in that thread, John, is that "there is no sales tax on intangible goods in the US." As we know from your own RE: Customer states "we do not pay tax on a service" et seq., there are examples of taxation of intangible goods, including services, in the United States.)

Originally written by Jacek K. on March 21, 2009 11:25 AM (One generalization we know is incorrect in that thread, John, is that "there is no sales tax on intangible goods in the US." As we know from your own RE: Customer states "we do not pay tax on a service" et seq., there are examples of taxation of intangible goods, including services, in the United States.)

There maybe examples of taxation of intangible goods, including services in the USA, but not neccesserily for the translation/interpretation services. And John Bunch never told us whether he contacted the local tax authorities and if he did, what was their answer on the sales tax issue.
 

Dear All,

it seems that no VAT has to be charged at all and that the info I got was wrong. I posted the same in another forum and was just told I should be embarrassed for even asking, so I wanted to say: Sorry if I wasted your time. I just wanted some info, as all the official info I received and found during my own research was misleading to me. Sorry again!

No problem whatsoever, Claudia.

My assumption as per the information of the Finanzamt is that there was not difference made between B2B and B2C, therefore the confusion.

 Laurent K.

Claudia,

Taxes belong to the most confusing and complex issues in the world, particularly in cross-border transactions. Not only should you not apologize for anything, but you should be thanked for having brought this topic up for the benefit of thousands of TC members. Come back any time with such tough stuff!

Jacek

Thank you so much for not making me feel stupid. I was a bit shocked when I was told I should be embarrassed in the other forum and that I should have done more research myself. I did do a lot of research but if even a VAT expert with more than 20 years of experience gives me the wrong answer how far will my own research get me?

Here is what I have concluded now (please let me know if you all agree):

Translations are sonstige Leistungen (other services) and NOT elektronische Dienstleistungen (electronic services) according to the German VAT tax law. So based on this for B2B transactions the Leistungsort (place of service) is that of the receiving company, so VAT reversed should apply and no VAT needs to be paid. In case of a private individual the Leistungsort should be the US - when the translator is US-based - and thus no VAT should be charged and no registration is needed because the US does not charge VAT.)

Originally written by Claudia Nitzschmann on March 22, 2009 4:12 PM   Translations are sonstige Leistungen (other services) and NOT elektronische Dienstleistungen (electronic services) according to the German VAT tax law. So based on this for B2B transactions the Leistungsort (place of service) is that of the receiving company, so VAT reversed should apply and no VAT needs to be paid. In case of a private individual the Leistungsort should be the US - when the translator is US-based - and thus no VAT should be charged and no registration is needed because the US does not charge VAT.)

Agreeing with that so far...

Laurent K.