Invoice - New to Contracting

[SueEllen]

This is a UK based site OzBound so you are lucky people are giving you help at all.

In Germany if you are a contractor you need to make yourself a freelancer ('Freiberufler'). This means you do everything as a person not through a company structure.

I suggest you use google to find out the ins and out of how you need to register etc. There is plenty of stuff on the internet about it.

[mrv]

You have 2 issues here:
1. You have signed your contract as "you". That is bad, mmkay, because only the person/entity that signed the contract can invoice Darwin, not some friend, not a company of your neighbour, and this means you must be able to issue an invoice yourself. You could check with Darwin if they would accept an invoice from a 3rd party on your behalf, but 97,34% of the time they will say "no". So you must get some sort of business going on yourself asap. You can try becoming a freelancer in Germany, or you can get some sort of personal company or freelancer status in Poland as well, whatever is easier and quicker. But check if your polish freelancer or whatever status allows you to do business in the EU, because you're international man of financial mystery!

2. Taxes. This depends on how you sort #1. If you go german way, you will pay german taxes in Germany. If you go polish way, you need to check what does the double taxation treaty say about that. If it's only 5 weeks, doubt you will become resident for tax purposes in Germany, usually it takes 183 days yadda yadda, but I could be wrong here, so check. Then get an accountant to sort out your money for you, or do that yourself if you know how, and happy sailing!

[SueEllen]

2. Taxes. This depends on how you sort #1. If you go german way, you will pay german taxes in Germany. If you go polish way, you need to check what does the double taxation treaty say about that. If it's only 5 weeks, doubt you will become resident for tax purposes in Germany, usually it takes 183 days yadda yadda, but I could be wrong here, so check. Then get an accountant to sort out your money for you, or do that yourself if you know how, and happy sailing!

You are wrong.

The rule in Germany is:

Pay tax on your German sourced income in Germany otherwise the German taxman will chase you all over the world for the money and claim you owe them a bit more. Darwin and the client will be happy to oblige the German taxman and give them all information necessary to chase you.

[OzBound]

You have 2 issues here:
1. You have signed your contract as "you". That is bad, mmkay, because only the person/entity that signed the contract can invoice Darwin, not some friend, not a company of your neighbour, and this means you must be able to issue an invoice yourself. You could check with Darwin if they would accept an invoice from a 3rd party on your behalf, but 97,34% of the time they will say "no". So you must get some sort of business going on yourself asap. You can try becoming a freelancer in Germany, or you can get some sort of personal company or freelancer status in Poland as well, whatever is easier and quicker. But check if your polish freelancer or whatever status allows you to do business in the EU, because you're international man of financial mystery!

2. Taxes. This depends on how you sort #1. If you go german way, you will pay german taxes in Germany. If you go polish way, you need to check what does the double taxation treaty say about that. If it's only 5 weeks, doubt you will become resident for tax purposes in Germany, usually it takes 183 days yadda yadda, but I could be wrong here, so check. Then get an accountant to sort out your money for you, or do that yourself if you know how, and happy sailing!

Thank you for your reply mrv.

You are correct, I signed the contract myself ( with full name, no more details though ). Do you think that fact that I'm an authorised signatory/proxy in my relative's company would make some difference here? I could basically invoice Darwin and sign it myself on behalf of the mentioned company... Wouldn't that be similar to how umbrella companies work?
I did some research and it looks like there is no need for me to register a business in Germany for such a short contract. I also wouldn't have to pay a double tax..

[EXPATTAX]

Hi OzBound, I wonder how things have developed for you. Let me know what you have done in the meantime. All sorted? Still questions? New questions arising? Let us know, maybe we can shed some more light on things for you.

[stek]

Thank you for your reply mrv.

You are correct, I signed the contract myself ( with full name, no more details though ). Do you think that fact that I'm an authorised signatory/proxy in my relative's company would make some difference here? I could basically invoice Darwin and sign it myself on behalf of the mentioned company... Wouldn't that be similar to how umbrella companies work?
I did some research and it looks like there is no need for me to register a business in Germany for such a short contract. I also wouldn't have to pay a double tax..

Suggest iron guard on your arsehole.

fooked.de...

[TheFaQQer]

[Boo]

The right way is to pay tax on German earned income in Germany.

Or your Ltd Co can send any employee to work in any other EU country for up to 183 days per year without them falling under the destination countries tax laws under the 183 day rule.

Boo2

[SueEllen]

Or your Ltd Co can send any employee to work in any other EU country for up to 183 days per year without them falling under the destination countries tax laws under the 183 day rule.

Boo2

Doesn't work like that unfortunately.

Each EU country has it's own rules about it.

[Boo]

Doesn't work like that unfortunately.

Each EU country has it's own rules about it.

No, you are wrong. The 183 day rule is a fundamental treaty obligation that each member state of the EU must honour and which is enforceable through the European court.

Boo