Increasing globalisation of international trade and commerce involving goods as well as services has a significant impact on VAT. In consequence, VAT can be a key-factor decisive for the competitiveness of an enterprise. It is important to take into consideration that VAT does not only arise if a company produces profit. Since turnovers in general are subject to VAT, VAT can soon become a cost-factor substantially reducing the profit-margin of a company.

Irreversible problems and consequences may arise from material damage, missing or incorrect documentation or lacking VAT-clauses in contracts. It is often too late to amend those shortcomings in the course of a tax audit.

German VAT has to be seen in connection with the 6th EU directive, which directly influences the German law. Despite ongoing VAT harmonization inside the European Union the entrepreneur will still find himself facing a wide range of special cases in the relevant national VAT law. VAT consulting, therefore, needs specialists.