Value Added Tax

Value Added Tax

With regard to entrepreneurs being entitled to reclaim input VAT and performing supplies between each other VAT is neutral. However, if certain formal requirements are not complied with or obligations of proof are not met, VAT can be an effective burden for an entrepreneur. When running a business the lack of the necessary expertise in respect of VAT is an incalculable risk.

Although exemption regulations, on the one hand, provide for a discharge of VAT regarding numerous kinds of supply, on the other hand however, the input VAT deduction in connection with such supplies is not allowed. But, the VAT burden can be optimized through proactive planning and structuring.

Furthermore, from the perspective of the state, VAT is, in particular, prone to abuse. Its complexity often leads to an incorrect application with far-reaching consequences. Thus, the business processes must take this situation into account: The employees must be trained respectively and provided with the necessary basis for decision making. Finally, the global nature of the markets requires rapid global action. Therefore, VAT information must be available without delay.

BDO, i.e. the VAT Department, gets you up to speed in terms of assured handling of VAT.

Our range of services in detail is the following:

VAT Report

Our VAT experts provide an analysis, based on your specifications, along with recommendations for action and, where appropriate, showing the risks of the scenarios performed or intended in your business. Furthermore, supporting our clients with litigations and writing ‘second opinions’, these are part of our everyday tasks.

VAT Review

We verify the correct handling of all transactions performed in your business. We discover errors, put forward solutions and provide appropriate documentation to ensure the correct handling of such transactions in the future.

VAT In-house Workshop

Our VAT specialists train your staff based on actual transactions in your business. Employees of the accounting department, and, in particular, of the sales department, are made aware of significant VAT-related issues. This helps you establish the required in-house expertise for the correct handling of this complex material.

VAT Manual

Based on the VAT review and the in-house workshop the results are summarized in a VAT manual. The standard transactions recurring in your business are recorded together with instructions and checklists. This manual gives your employees work instructions tailored to the circumstances and needs of your business.

VAT and SAP®

Our VAT experts optimize your VAT determination in the SAP® program, based on SAP® tools. Using a process table, the VAT determination can be automated based on a quick check. Tools for checking the VAT IDN are also available.

VAT Compliance

We take care of your business’ VAT return obligations worldwide. In addition to the preparation and filing of preliminary German VAT returns, annual VAT returns, EC sales lists and Intrastat declarations, we rely on Web-based solutions to handle the correspondence with the local tax authorities.

VAT Hotline

Based on our experience, our VAT team quickly finds solutions for your VAT issues. Talking to a competent VAT expert gives you legal certainty. BDO’s VAT specialists advise our clients in Germany and abroad in all aspects of German VAT law, as well as support them through the cooperation with our BDO Member Firms worldwide in all aspects of European and international VAT law.


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