For businesses involved in cross-border transactions within the European Union, proper documentation is key to ensuring VAT compliance. One of the critical requirements for VAT-exempt deliveries within the EU is the “Gelangensbestätigung” (Proof of Arrival). This document serves as proof that goods have arrived at their destination in another EU country and is necessary to maintain the VAT exemption for intra-EU deliveries. Given the complexity of these transactions, businesses must pay special attention to the accuracy and completeness of the documentation.
Key points to consider:
- What is the Gelangensbestätigung?
The Gelangensbestätigung is an official confirmation, signed by the recipient of the goods, proving that the delivery has arrived in another EU country. It is a crucial document required for VAT-exempt deliveries within the European Union. - Mandatory for VAT-Free Deliveries:
For a delivery to remain VAT-exempt under intra-community supply regulations, German tax law mandates that businesses must provide proof of the goods’ arrival at their destination. Without this proof, VAT may be charged retroactively. - What must the Gelangensbestätigung contain?
The Gelangensbestätigung must include:- The recipient’s name and address.
- A description of the goods.
- The delivery date or the period in which the goods were received.
- The destination country and the specific location of receipt.
- The date and signature of the recipient or an authorized representative.
- Electronic Documentation is Accepted:
The Gelangensbestätigung can be provided electronically. A signed PDF or a similar electronic format is acceptable, provided all required details are included. - English Versions Available:
For businesses dealing with international partners, it is worth noting that the Gelangensbestätigung can also be issued in English. This can facilitate smoother transactions when dealing with foreign clients, ensuring that all necessary parties understand the document’s contents. - Importance of Accurate Documentation:
Incomplete or inaccurate Gelangensbestätigungen can lead to significant tax implications, including the risk of being required to pay VAT on the delivered goods. It is essential to verify that all details are correct and that the proof is properly signed and stored for future audits.
By ensuring proper documentation, including a valid Gelangensbestätigung, businesses can avoid VAT complications and ensure that their intra-EU deliveries remain compliant with tax laws.
For further questions or assistance with VAT matters, WW+KN, a Baker Tilly Company, is available at info@vat-germany.com.
