Here is a statement on double taxation provided by Finanzamt Graz-Stadt in relation to sales revenue in Austria and Germany:
- If a foreign businessman with no registered company base (expo booths are not classified as a company base) sells goods of whatever nature within the sovereign borders of the Austrian state, this sale shall be subject to Austrian VAT, since the rights of use are transferred from the seller to the customer in Austria. Consequently, the delivery (sale) is considered taxable and indeed subject to statutory taxation in Austria.
- If the businessman in question is German and brings his goods from Germany to Austria. He also conducts a delivery in Germany and, simultaneously, an intra-community acquisition in Austria. Expressed more simply, the German businessman delivers goods to himself from Germany to Austria. In Austria this notional delivery is treated as an intra-community acquisition, and – if the other preconditions are also fulfilled – the acquisition tax must be deducted as input VAT. In Germany, the delivery is treated as an intra-community delivery, and non-taxable (in Germany) provided the it can be proven that the preconditions have been met – such as when the goods move from Germany to Austria and taxation on the acquisition takes place in Austria (e.g. by providing an Austrian VAT ID number). This leads to a kind of detaxation in the country of origin. Effective taxation is applied, after delivery, to the sale of the good at the trade fair in Austria.
In principle, the actions of the German businessman are subject to 3 taxation procedures:
- Delivery in Germany and movement of goods to Austria – to be tax-free in Germany (if preconditions are met)
- Intra-community acquisition, as a rule with input tax deduction in Austria and
- A delivery made in Austria that is usually subject to taxation (at the trade fair).
In short: As we see it, ‘double taxation’ can only occur of the preconditions in Germany for tax-free delivery within the EU (i.e. providing the service to oneself) are not met or can’t be proven.
If you have any further questions, please feel free to call Finanzamt Graz-Stadt on +43 316 881 538