In the case of doing business with foreign legal entities in Germany, the activity of construction and assembly is taxed with construction tax (Bauabzugssteuer) in the amount of 15%, which is paid by the German customer. If a Slovenian company obtains a certificate of exemption from paying this tax, then the obligation to pay the tax naturally ceases.
A certificate of exemption from construction tax is mandatory for any foreign company providing construction, assembly or installation services in Germany. The certificate is not a condition for starting the work, but it is a condition for payment of the invoice by the client. If you do not submit the receipt to the customer, he must withhold 15% of the invoice value from you when paying the invoice and transfer it to the German tax office each time the invoice is paid. The withheld construction tax can be reclaimed, but only after the tax liability has been verified at the beginning of the following year. The check of tax obligations is a calendar review of the entire documentation related to work in Germany and through which any tax or income tax obligations to the German state are determined. AND, of course, our company can help you obtain it.