Insights
VAT
Invoicing by a farmer under the VAT flat‑rate scheme
Agricultural and forestry businesses are also subject to the Value Added Tax Act (UStG) in the case of flat‑rate taxation. Despite the application of the average‑rate taxation, there are clear rules on when an invoice must be issued and what information it must contain.
Flat‑rate agricultural and forestry operators are regarded as entrepreneurs under the Value Added Tax Act (UStG). This gives them, in principle, the right to issue invoices. An obligation to invoice arises in particular when supplies or other services are provided to other entrepreneurs for their business. This also applies within agriculture, for example in service relationships between flat‑rate businesses (the “entrepreneur chain”).
Special features for flat‑rate businesses
Compared with businesses that are taxed under the regular VAT rules, flat‑rate businesses have only minor differences in invoicing. A significant peculiarity concerns the VAT identification number (UID): Flat‑rate businesses that carry out transactions exclusively under the average‑rate taxation do not require a UID. In these cases the invoice must contain the note “Average tax rate 13 %” instead of a UID. Such invoices entitle the business recipient – despite the absence of the supplier’s UID – to deduct input tax.
A proper invoice must contain the following details:
Warning: A separately invoiced tax amount creates a tax liability by virtue of invoicing, even if the tax amount should not have been invoiced in the first place or the VAT has been mistakenly shown too high. In this case a correction of the invoice is usually required; otherwise the VAT must be paid to the tax office.
Special features for flat‑rate businesses
Compared with businesses that are taxed under the regular VAT rules, flat‑rate businesses have only minor differences in invoicing. A significant peculiarity concerns the VAT identification number (UID): Flat‑rate businesses that carry out transactions exclusively under the average‑rate taxation do not require a UID. In these cases the invoice must contain the note “Average tax rate 13 %” instead of a UID. Such invoices entitle the business recipient – despite the absence of the supplier’s UID – to deduct input tax.
A proper invoice must contain the following details:
- Name and address of the supplying or performing entrepreneur
- Name and address of the recipient; for invoices whose total amount exceeds EUR 10,000, the UID of the recipient must be stated
- Quantity and commercial description of the goods supplied or the type and scope of the other service
- Date of supply or other service
- Consideration (net amount) for the supply or other service
- The tax amount attributable to the consideration
- Date of issue of the invoice
- Continuous number that uniquely identifies the invoice
- UID of the entrepreneur or the note “Average tax rate 13 %”
Warning: A separately invoiced tax amount creates a tax liability by virtue of invoicing, even if the tax amount should not have been invoiced in the first place or the VAT has been mistakenly shown too high. In this case a correction of the invoice is usually required; otherwise the VAT must be paid to the tax office.