1. Country-Specific Features
  2. Germany Help Topics
  3. Germany Tax Topics For Accounts Without SuiteTax
  4. Germany Tax Codes

Germany Tax Codes

Tax codes determine how much tax is paid on each transaction line item. For NetSuite to calculate correct values on transaction records and tax reports, make sure that the tax codes for Germany are set up correctly.

Important Things to Note

  • The International Tax Reports SuiteApp only supports 139 unique tax codes per tax period for each country.

  • You can use more than 139 tax codes for each country if these tax codes are not used in the same tax period.

  • You must use the tax code properties provided by the SuiteApp. In addition to the properties that are common to all nexuses, the Germany VAT reporting feature uses the following properties:

    • Reduced Rate

    • Special Reduced Rate

    • Import

    • Import VAT

    Carefully review your current tax codes and edit them to match the settings in the Tax Code Table for Germany.

    For more information about tax codes, see Tax Code Properties and Creating Tax Codes.

  • The Reverse Charge Code box must be checked on the ESSP tax code used for purchases of services from other EU member states.

  • Tax codes for purchases of services from outside the EU must have the following boxes checked:

    • Reverse Charge Code

    • Import

    • Applies to Service Items

    For more information about the settings for the IS tax code, see Tax Code Table for Germany.

  • In response to the COVID-19 tax relief measures, temporary tax codes with effectivity date of July 1, 2020 to December 31, 2020 are provisioned to accounts with Germany nexus. For more information, see Germany COVID-19 Tax Response: Temporary Tax Codes.

Tax Code Table for Germany

The following table shows the tax properties required to correctly generate the Germany tax reports provided by the International Tax Reports SuiteApp. The tax code names or letters presented in the table are suggested names or default system preferences. You can rename the tax codes. Tax reports identify transactions by looking at the tax code properties, not the tax code names.

On the New Tax Code or Edit Tax Code page, check the boxes of the properties that apply to the tax code. For more information about tax code properties, see Tax Code Properties.

To understand how NetSuite uses the tax codes to get the values for the Periodic VAT report for Germany, see What goes into each box – Germany Monthly/Quarterly VAT report.

For information about notional rates in EU B2B transactions and VAT reports, see EU Notional VAT.

Important:

Please consult your tax agency for the correct tax rates.

Tax Code

Description

Deutsche Beschreibung

Property

Rate

Notional Rate

Available On

E-DE

Exempt

Steuerfrei

Exempt

0%

—

Both (Sales and Purchases)

ER-DE

EU sales/purchases (goods and related services) -reduced rate

EG-Verkäufe/Einkäufe (Waren und verb. Dienstleistungen) – Ermäßigter Steuersatz

EC Code

Reduced Rate

0%

R-DE

Both (Sales and Purchases)

ERT-DE

EC sales/purchases (goods and related services) -reduced rate, rate more than 0

EG-Verkäufe/Einkäufe (Waren und verb. Dienstleistungen) – ermäßigter Satz, Satz höher als Null

EC Code

Default Code

Reduced Rate

Any rate greater than 0%

R-DE

Both (Sales and Purchases)

ES-DE

EC sales/purchases to another EC country (goods)

EG-Verkäufe/Einkäufe an anderen EG-Staat (Waren)

EC Code

0%

S-DE

Both (Sales and Purchases)

ESR-DE

EU purchases -other rate

EG-Einkäufe - Sondersatz

EC Code

Special Reduced Rate

0%

Any rate greater than 0%

Both (Sales and Purchases)

ESSP-DE

EC purchases (services)

EG-Einkäufe (Dienstleistungen)

EC Code

Reverse Charge Code

Applies to Service Items

0%

S-DE

Both (Sales and Purchases)

ESSS-DE

EC sales (services)

EG-Verkäufe (Dienstleistungen)

EC Code

Applies to Service Items

0%

S-DE

Both (Sales and Purchases)

EST-DE

EC sales/purchases to another EC country (goods), rate more than 0

EG-Verkäufe/Einkäufe an anderen EG-Staat (Waren), Satz höher als Null

EC Code

Any rate greater than 0%

S-DE

Both (Sales and Purchases)

EZ-DE

Tax-free EU sales/purchases

Steuerfreie innergemeinschaftliche Erwerbe

EC Code

Nontaxable

0%

Z-DE

Both (Sales and Purchases)

EZR-DE

EU purchases -zero rate

EU-Einkäufe - Nullsatz

Effective from January 1, 2023

EC Code

0%

ZR-DE

Both (Sales and Purchases)

IS-DE

Purchase of services from outside of EU

Einkauf von Dienstleistungen aus Nicht-EU-Staat

Reverse Charge Code

Applies to Service Items

Import

0%

S-DE

Both (Sales and Purchases)

IT-DE

Import tax

Einfuhrsteuer

Import VAT

0%

—

Both (Sales and Purchases)

OS-DE

Sales to third country outside of EU

Verkauf an Drittstaat außerhalb der EU

Applies to Service Items

Export

0%

—

Both (Sales and Purchases)

R-DE

Reduced rate

Ermäßigter Steuersatz

Reduced Rate

7%

—

Both (Sales and Purchases)

RC-DE

Reverse charge

Umkehrung der Steuerschuld

Reverse Charge Code

0%

S-DE

Both (Sales and Purchases)

S-DE

Standard rate

Normal-Steuersatz

—

19%

—

Both (Sales and Purchases)

S1-DE

Mobile Device

Mobilgerät

Reverse Charge Code

Category: Mobile Device

0%

S-DE

Both (Sales and Purchases)

SR-DE

Other rate

Sondersatz

Special Reduced Rate

0%

—

Both (Sales and Purchases)

Z-DE

Tax-free sales without input tax deduction

Steuerfreie Umsätze ohne Vorsteuerabzug

Nontaxable

0%

—

Both (Sales and Purchases)

ZR-DE

Zero rate

Nullsatz

Effective from January 1, 2023

0%

—

Both (Sales and Purchases)

ZX-DE

International exports (third country)

Internationale Exporte (Drittstaat)

Export

0%

—

Both (Sales and Purchases)

Germany COVID-19 Tax Response: Temporary Tax Codes

In response to the COVID-19 tax relief measure, temporary tax codes with reduced rates are effective on July 1, 2020 until December 31, 2020. The International Tax Reports SuiteApp provisions the following tax codes to accounts with Germany nexus:

Tax Code

Description

Rate

Effective From

Valid Until

Property

Notional Rate

Available On

S2-DE

Standard rate from July 1, 2020 -December 31, 2020

16%

July 1, 2020

December 31, 2020

 

 

Both (Sales and Purchases)

R1-DE

Reduced rate from July 1, 2020 -December 31, 2020

5%

July 1, 2020

December 31, 2020

Reduced Rate

 

Both (Sales and Purchases)

RC1-DE

Reverse charge from July 1, 2020 -December 31, 2020

0%

July 1, 2020

December 31, 2020

Reverse Charge Code

S2-DE

Both (Sales and Purchases)

SS1-DE

Applicable for Mobile Devices from July 1, 2020 -December 31, 2020

0%

July 1, 2020

December 31, 2020

Reverse Charge Code

Category: Mobile Device

S2-DE

Both (Sales and Purchases)

ES1-DE

EC sales/purchases to another EC country (goods) -standard rate from July 1, 2020 -December 31, 2020

0%

July 1, 2020

December 31, 2020

EC Code

S2-DE

Both (Sales and Purchases)

ER1-DE

EU sales/purchases (goods and related services) -reduced rate from July 1, 2020 -December 31, 2020

0%

July 1, 2020

December 31, 2020

EC Code

Reduced Rate

R1-DE

Both (Sales and Purchases)

ESSS1-DE

EC sales (services) from July 1, 2020 -December 31, 2020

0%

July 1, 2020

December 31, 2020

EC Code

Applies to Service Items

S2-DE

Both (Sales and Purchases)

ESSP1-DE

EC purchases (services) from July 1, 2020 -December 31, 2020

0%

July 1, 2020

December 31, 2020

EC Code

Reverse Charge Code

Applies to Service Items

S2-DE

Both (Sales and Purchases)

IS1-DE

Purchase of services from outside of EU from July 1, 2020 -December 31, 2020

0%

July 1, 2020

December 31, 2020

Reverse Charge Code

Applies to Service Items

Import

S2-DE

Both (Sales and Purchases)

Tracking VAT Paid on Imports into Germany

You should have a tax code for imports that are subject to VAT (refer to tax code IT in the tax code table). When recording the type of bill (which is a 100% VAT bill), ensure that you record this import VAT as input tax, where the net amount represents the VAT amount. NetSuite reports the full net amount in box 62 of the German VAT report.

Additional Information

Related Topics

General Notices