I was wondering how you usually charge your clients being a freelancer in Germany. Should the tax be 19% Umsatzsteuer (VAT) or simply 0% as Webflow is based in the USA and hosting is a digital service ? I’d like to fully comply with the law but the law isn’t that clear
EDIT1:
I think I might have answered my question. I found that “Umsatzsteuer” (VAT) should only be charged for services rendered inside the country. Since Webflow is based in the USA, I probably do not need to charge my clients for an “american service”. Would someone be able to confirm ? Below is the german text I found on wikipedia:
Umsatzsteuer fällt immer dann an, wenn im Inland eine Dienstleistung durch ein Unternehmen erbracht oder eine Ware gegen Entgelt geliefert wird. Der Normal-Steuersatz beträgt 19 Prozent. Für bestimmte Umsätze gibt es eine Steuerbefreiung (§ 4 UStG) oder einen ermäßigten Steuersatz von zurzeit 7 Prozent.
Also, do you know how much Stripe charges for credit card processing fees for someone like me living in Germany ? is it 2,9 or 3,5 % of the total amount charged to the client ? Has anymone experience with it ? The Webflow documentation states:
The credit card processing fee varies depending on the country you’re in, ranging from 3 to 3.5% of the total charge.
EDIT 2:
I found that information on Stripe’s website but I am not sure those numbers really apply to the Webflow context… any idea ?
I´ve got the same questions. Especially the part when it comes to charging the 19% taxes (right now 16% during to corona). Were you able to clear that part out?
Thank´s, Nils
(If you want, we can discuss in german via direct message)
No one responded to my message unfortunately.
For now, I charge my clients via Stripe billing without any tax, not the buggy Webflow billing.
Since the hosting is not being offered by ourselves but on behalf of Webflow which is not based on the EU, VAT would not be to be charged since the service isn’t provided within Germany. As for the Corona, Umsatzsteuer is now again 19% if I am not mistaken.
Maybe I read that wrong and your client is the one who purchases from webflow directly, but if not and you’re the one (in Germany) who is invoicing someone (in Germany) then this is not true and I would suggest you talk to your accountant. I’m not an accountant.
I suggest you do it clean:
a) you pay Webflow for the hosting and write that cost off as you normally would do
b) you invoice your client for the hosting service you offer them with a normal 19% VAT.
I know this topic is old, but it has not really ever been 100% clarified - I had this same question and I think it’s actually quite simple.
Webflow writes:
“By default, Client Billing invoices are sent to the client using your company information. You can toggle those off if you prefer to not send invoices directly to the client, or if you want to set Webflow as the invoicing company.”
So basically I think if I were to send the invoices under MY company name I 100% would have to charge taxes because the invoice is under my company name, but if I select Webflow as the invoicing company, then I would not have to add taxes, since they pay Webflow directly?
So… the only difference to transferring the project over to a new Webflow account then is that I still have admin access and potentially could add surcharges that Webflow then pays to me directly.
Correct?