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Last edited by Olly; 16 January 2013, 19:59. -
You can do 183 days. On a Monday - Friday commute, staying in hotels, you can do around 45 weeks and stay in the limit. If you opt to live over there all the time it is different. Renting an apartment or opening local bank account will get you classed as resident - pronto and you should go through management co.
Remember, that you should be paying tax somewhere. -
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You're way of working could get you classifed as resident in Germany for tax (if they know about it
). You can always wing it though, and use your Ltd, if you do not expect to stay over there for a long time. German tax people were recruited from the gestapo and can be very nice if you cooperate. Otherwise it's 
Read the first timer guides for Germany. A mgt co will your finanial affairs while abroad.Comment
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It's my personal take on this that despite us having the "benefits" (huh???) of being in the EU "single market", the setup for cross border contracting is a mess. I have only ever done short term with Monday to Friday commuting. Until the mess is sorted out I'll stick with a) Turning jobs down, b) Only doing short term when the money is good enough. I think 800 Euro a day is the minimum for me.
The only way to work cross border in my opinion and get any real benefit from it is to be an EU Commissioner, then everything is tax free.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
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Originally posted by Olly View Post
Management Co - think ITECs, Albany et al. Who are you actually invoicing. If you are invoicing a UK co, you add VAT. If you invoice a German Co, you do not. If you use a Mgt Co, they will tell you what to do. Tres simple.Comment
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Arguing about where a service is physically provided, is really better avoided if possible. In case of doubt, each country will maintain that you owe VAT to them.Originally posted by Olly View Post
There are 4 distinct ways of working:
1. Your Ltd Co, invoice a UK client.
2. Your Ltd Co, invoice a German client.
3. You work for a managament co in Germany (kind of like an umbrella).
4. You register yourself in Germany as a freelancer.
#4 is probably too much hassle and expense for your case.
#3 is (or should be) trouble-free, but you are in the German tax system
#2 you don't collect VAT. The German tax authorities may decide that you are resident, in which case your Ltd Co could be assessed as a German-based company. You do not want this to happen.
#1 you collect UK VAT. But the Germans may assess your Co as German.
As long as the Germans don't nab you as a resident there, for #1 & #2 you pay British tax. Opinion here seems to be that UK tax is unspeakably high, except compared to other countries'!Comment
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IME non-cooperating with them equals expecting to be able to speak to them in a language other than German.Originally posted by Turion View PostYou're way of working could get you classifed as resident in Germany for tax (if they know about it). You can always wing it though, and use your Ltd, if you do not expect to stay over there for a long time. German tax people were recruited from the gestapo and can be very nice if you cooperate. Otherwise it's
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timLast edited by tim123; 5 April 2008, 13:43.Comment
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Dont do it!
I and a lot of colleagues are all under investiagtion by the German authorities. They do not treat you fairly - they go back 10 years to claim back taxes and - to make things worse - not even professional accountants and lawyers in Germany can tell you what you need to pay to be "legal"
Things like "trade tax" and VAT can come to haunt you later if you try and work through a UK limited company.
All of the management companies (ITS, Albany etc) are all illegal according to German lawyers but totally legal according to UK accountants!
My advice would be to stay at home!Comment
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