WW+KN, a Baker Tilly Company, offers specialized support for suppliers and service providers to US military forces in Germany, ensuring the proper handling of procurement forms to secure VAT exemption. The US military employs a simplified procurement procedure to facilitate VAT-free purchases for official use, which is crucial for compliance with German tax regulations.
Procurement Process Overview:
- Simplified Procurement Procedure:
- The US military uses a simplified procurement process that allows for VAT-free acquisition of services for official use up to €2,500 (as outlined in the BMF letter dated April 1, 2009, IV B 9 – S 7492/07/10008 [2009/0216757], BStBl I p. 526).
- For purchases up to 30,000 euro, the IMPAC-VISA credit card is utilized, which is recognized for VAT exemption under Article 67(3) NATO SOFA.
- Documentation Requirements:
- For Purchases Over 2,500 euro: Appropriated Fund Contracting Offices use specific contract applications (procurement orders) attached as Appendix 1. While the IMPAC-VISA card is accepted for official procurement up to 30,000 euro, it does not replace the need for a formal procurement order for higher amounts.
- For Nonappropriated Fund Contracting Offices: Procurement orders as outlined in Appendix 2 are used for services above and below 2,500 euro, regardless of the payment method.
- VAT Compliance:
- Ensuring the accurate completion of these forms is essential to avoid disputes with German tax authorities.
- These forms have been historically accepted even if issued solely in English.
Services Offered by WW+KN:
- VAT Registration: Assistance with VAT registration for foreign companies.
- Compliance Management: Handling ongoing VAT compliance and form submissions.
- Consultation: Expert advice on VAT exemption procedures and compliance.
- Liaison with Authorities: Coordination and communication with German tax authorities on behalf of clients.
Experience and Expertise:
WW+KN has a long-standing history and deep expertise in VAT matters related to US military procurement in Germany. Our comprehensive understanding of the procurement procedures and requirements ensures that suppliers and service providers can navigate the complexities of VAT compliance effectively.
For more detailed guidance and support, please contact us directly via e-mail to info@vat-germany.com.
