Foreign Coach Companies in Germany
Passenger transport is generally liable to VAT in Germany.
The most common case hereby is transport by coach. The transport includes public transport as well as for example, excursions or holiday destination travel. The transport is always subject and liable to tax, regardless whether a domestic or foreign coach company does the transport. If the transport route does not only include Germany, only the route in Germany is liable to tax.
A foreign coach company travelling through Germany is liable to VAT registration in Germany. Furthermore, the form USt1 TU for coaches with a license to travel abroad must be kept in each coach for customs inspection and presented on demand. This form is issued after registration in Germany. If the document is not presented the customs authorities may ask for a security deposit.
Summary of the most important points
- Foreign coach companies travelling through Germany must generally register for VAT with the responsible tax office.
- The most common case is a coach journey through or to Germany.
- The form USt1 TU must be applied for and carried in the vehicle for customs inspection purposes.