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Papierschlange

Glossary entry

German term or phrase:

Die Gesellschaft tätigt umsatzsteuerfreie Umsätze.

English translation:

The company's sales are not subject to VAT/are VAT-exempt.

Added to glossary by Sebastian Witte
Apr 2, 2016 16:02
8 yrs ago
5 viewers *
German term

umsatzsteuerfrei

German to English Bus/Financial Law: Taxation & Customs Auditing of real estate annual financial statements
Hello every ProZ.com buddy,

Die Gesellschaft stand bis zum Zeitpunkt des Verkaufs in einer umsatzsteuerlichen Organschaft mit der Z AG. ***Die Gesellschaft tätigt umsatzsteuerfreie Umsätze***.

Does this mean that they are liable to charge VAT and pass it on to the competent local German tax office on any domestic turnovers and those intra-EU ones that require it (i.e. to all 8400 customers and certain types of 8339 customers, like when they do not have a VAT ID), while also, on other occasions, being liable to not charge VAT on any intra-EU and third-party country turnovers, which require just that (8339/8338),

or does this mean that they are not VAT-registered in the first place?

This difference will have to show in the translation, hence my question.

The problem here being, quite frankly, my not being familiar with a consolidated tax group under VAT law because otherwise asking this question would not be necessary.

Best regards,

Sebastian Witte
Proposed translations (English)
3 +3 VAT-exempt (whether regd. or unregd.)
2 VAT-free turnover
Change log

Apr 3, 2016 17:34: Sebastian Witte changed "Edited KOG entry" from "<a href="/profile/60654">Sebastian Witte's</a> old entry - "Die Gesellschaft tätigt umsatzsteuerfreie Umsätze."" to ""The company\'s sales are not subject to VAT/are VAT-exempt.""

Votes to reclassify question as PRO/non-PRO:

Non-PRO (2): Edith Kelly, writeaway

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Discussion

Adrian MM. (X) Apr 3, 2016:
(AmE) corporate income tax In the UK, companies or 'corporates' pay income tax through what is known - to UK non-translators and non-interpreters - as 'corporation tax'. Ordinary, general & limted partnerships - bar LLPs - pay income tax assessed on each partner individually.
Ted Wozniak Apr 3, 2016:
consolidated tax groups With respect to your "problem" when there is a consolidated tax group, the subsidiaries do not pay the tax in question, be it VAT, trade tax, or corporate income tax. The subsidiaries' taxable sales, trade revenue, income, whatever the basis of taxation is, is consolidated at the group parent, which is then liable for the taxes for the entire group. The subsidiaries are in effect tax exempt (or rather exempt from filing) as the tax is levied and paid at the parent level.
Adrian MM. (X) Apr 3, 2016:
sell-out @ gangels Sales tax is the US form of turnover tax (UK: purchase tax in my youth) a.k.a. VAT within the EU, formerly known as the EEC = European Economic Community of VAT 'merry-go-rounders'.
gangels (X) Apr 3, 2016:
Isn't VAT and sales tax two different things? VAT is paid only on that part of product you enhanced or refined by processing, while sales tax (or turnover tax as they say in England) covers ALL of your taxable revenue earned during the financial year.
Ted Wozniak Apr 2, 2016:
VAT exempt The company was part of a consolidated tax group for VAT purposes with Z AG. The company's sales are not subject to VAT/are VAT exempt.
Sebastian Witte (asker) Apr 2, 2016:
It is a German company as can be seen from my remarks above. I cannot publicly disclose its business activity within its industry, which, as indicated, is real estate.
Jonathan MacKerron Apr 2, 2016:
A German company? a non-profit or special-interest outfit?
Sebastian Witte (asker) Apr 2, 2016:
The Company effects ... VAT-exempt transactions?

Proposed translations

+3
1 hr
Selected

VAT-exempt (whether regd. or unregd.)

The Company does not 'effect' but conducts or is engaged in VAT (turnover-) tax-exempt sales.

Notes:

1. Umsatzsteuer is another name for VAT
http://transblawg.eu/2004/04/14/vat-law-for-translators-in-g...

2. Die Gesellschaft stand bis zum Zeitpunkt des Verkaufs in einer umsatzsteuerlichen Organschaft mit der Z AG.

if the company has been sold off and leaves Z AG's scope of consolidation and group tax-losses relief (Organschaft) it does not, unless it is the VAT-able parent as opposed to Z AG, move into VAT-registrable realms, but

3. there is no reason why it should not have been *voluntarily* regd. for Umsatzsteuer already.
Example sentence:

Eine Organschaft für Zwecke der Umsatzsteuer (§ 2 Abs. 2 Nr. 2 UStG) führt dazu, dass nur ein Unternehmer im Sinne des UStG vorliegt.

Reference:

http://www.proz.com/kudoz/german_to_english/law_taxation_customs/947545-steuerfreie_ums%C3%A4tze.html

http://https://de.wikipedia.org/wiki/Organschaft

Peer comment(s):
agree David Hollywood
2 mins
Thanks and good thinking de novo.
agree Edith Kelly : I'd omit the hyphen.
1 hr
Go raibh míle maith agat! Am gratified that you 'like' my explanation(s).
agree Tibor Pataki
17 hrs
Something went wrong...
3 KudoZ points awarded for this answer. Comment: "Thank you, also to Ted Wozniak."
1 hr

VAT-free turnover

I know for sure that certain non-profit organizations and other forms such as Kleinunternehmer are not liable to charge VAT.
But still more or less a guess.
Something went wrong...
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