VAT

There is no service tax outside the European Union. Consultants outside the EU are exporting services, and Earth.org GmbH in Munich, Germany does not have a permanent establishment outside Germany. No service tax charge is required on consulting invoices.

In Germany, service tax might be applicable (especially if your income is about EUR 17,500), but it is deductible from the side of Earth.org. So, the rates we agree on are net: that is, you can add the VAT, if applicable.

Regarding service tax inside the European Union: laws within the EU have been widely harmonized. Therefore there are not many differences. However, we urge you to check with your local VAT laws and your local tax consultant. In general, if you are liable to pay VAT (usually if the amount you bill is exceeding EUR 17,500), you must add the German VAT of 19% to your bill, as the services you are providing are for a German company. For this reason you will need to apply for a German tax number if you do not have one already. You can do this online.

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