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German PayPal business account and tax duties
 

Hello,

I would like to get some help if anyone here using PayPal business account for eBay business.

I am located in Turkey and Turkish citizen and want to establish a mini-gmbh type of company in Germany and assign my relative as managing director.

The items will be shipped from Turkey and selling to Germany on eBay.com will be not allowed. But the income of the business will be collected in the bank account of the German company even though the items are shipped from Turkey to the locations such as UK, USA etc not to Germany.

In such a case, am i responsible to pay any corporate income tax in Germany ? How the taxation of this business can be handled ? Finanzamt would ask me the invoice of each international sale one by one ?

Why i need to do all these is PayPan not available in Turkey anymore and i need to keep using PayPal through a third country.

I would be happy if someone in Germany can help me out.

Thank you.

Invoice for International Sales in Germany
 

Hello,

I would like to ask something to the German eBay sellers;

When you sell something to UK or USA from German, do you make German invoice for this sale or you make invoice only for domestic sales ? If you make the invoice also for each international sale then do you include VAT in the invoice or not ?

Thank you very much

Re: German PayPal business account and tax duties
 

is there anybody here who uses legit PayPal business account in Germany ?

Re: German PayPal business account and tax duties
 

VAT in Germany 19%
sale from Germany in EU 19%
sale from Germany in EU [ Buyer-Company with ID Number] 0% [ net price ]

sale from Germany in USA, always 0% [ net price ]
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+
income tax ca 20-25%
+
trade tax ca. 3-5%

Re: German PayPal business account and tax duties
 

For all your information - for the retail sales we need to add VAT to all sales within Europe if we base our company in Germany.So if we sell one item to UK from Germany, we need to add VAT to the invoice as well even though the item is shipped from 3rd country.But if you sell the item to U.S. or Asia then its VAT free.

If the majority of your sales is not to Europe then establishing company in Germany can be a good alternative but if majority of your sales will be to European countries then you need to establish the company somewhere outside of the EU to avoid VAT.