VAT Information

VAT or Value Added Tax Information

Q: How will the impending changes to the Euro affect the VAT Program?
A: "The change to the Euro will have very little effect on our program. VAT forms will not change until March 2002, at the earliest. In order to accommodate the change, we are printing our current VAT forms with a limit of DM5000 and Euro 2500. Forms printed in this way will be good through the January 1, 2002 changeover. After the changeover date, the forms will be printed with a Euro 2500 limit only."

Q: What if a customer has Vat forms in their possession at this time without the Euro adjustment printed on them?
A: "If anyone has VAT forms that do not have the Euro equivalent printed on them, they can bring them into us and have them reprinted at no charge any time before the expiration date listed."

Q: For those new to the KMC: What is the VAT Office, and how can it help them?
A: "First, let me explain what VAT stands for, which is Value Added Tax. Similar to sales tax in the United States, the Value Added Tax in Germany is assessed at a flat rate of 19% and is automatically included in the sticker price. The VAT Office offers VAT forms, which enable eligible personnel to avoid the tax on purchases, services and utilities obtained on the economy."

Q: Tell us more about the VAT form: What is it used for?
A: "Regular VAT forms may be used for purchases under DM5000, and are valid in Germany ONLY. They may be used for just about everything from shoes to car rentals. Regular VAT forms may not be used outside of Germany, nor are they authorized for use in Berlin."

Q: How much does a regular VAT form cost, and how many forms can be purchased at one time?
A: "The VAT forms cost $4 each, for up to five forms. If you wish to obtain more than five forms, each additional VAT form will cost $2. Customers may have up to ten (10) forms out under their sponsor's SSN at any one time. Also, it's important to remember that you can only use one form per visit, per vendor - so plan accordingly."

Q: What if you wish to make a purchase in excess of DM5000?
A: "Before paying for your merchandise, bring in the original invoice stating a) the tax-free amount of the purchase, b) the amount of tax and c) the transaction total. You then pay the VAT Office the tax-free amount of purchase, plus a $6 processing fee ($15 for the purchase of a vehicle). We will process the official tax paperwork and issue a check to the vendor on your behalf. It's easy!"

Q: Are any purchases off-limits?
A: "VAT forms may not be used to purchase precious metals, stocks and bonds or loose gemstones. They also may not be used for the purchase or alteration of real property or any legal fees associated with a real estate purchase, after-the-fact purchases, purchases made to support business activities or to make a purchase for an unauthorized person."

Q: Who is authorized to use VAT forms?
A: "Military ID card holders and self-sponsored civilians stationed in the European Command (EUCOM) are fully authorized to use the VAT form, as are ID card holders assigned on temporary duty (TDY) to EUCOM."

Q: Is there a way to use the VAT form for the utilities we pay when living off base/post?
A: "There is, and it's known as the Utility Tax Relief Program. This program is designed to alleviate the 16% tax on gas and electric bills, as well as the 7% tax assessed on water usage. There are some stipulations to this program: The VAT Office must have a contract with the utility company you're currently utilizing for your gas, electric or water and the utility bills must be in the sponsor's name to be tax exempt. There is a one-time $77 administrative fee associated with this program."