Who can be a general contractor?

Who can be a general contractor?

General contractors can appear in various forms. If an entrepreneur is given a service that consists of different trades, one speaks of a real general contractor. He takes over the complete cross-trade production of the work.

What does a general contractor cost?

In most cases, the general contractor is only responsible for building the house, i.e. for the shell and interior fittings. An average of 507 euros / sqm is expected for the shell, the interior fittings cost an average of 400 to 800 euros.

What is the difference between general contractor and general contractor?

While a general contractor usually does not employ his own craftsmen, but only engages subcontractors for all parts of an order, a general contractor has his own company (often a construction company) with which he completes the majority of an order and only subcontracts for individual trades …

What should be considered with subcontractors?

As a subcontractor, you provide services on behalf of other companies and are contractually bound to the main contractor, also known as the general contractor. The subcontractor has no business relationship with the actual client.

How much do you earn as a subcontractor?

As a subcontractor, you can expect an average salary of € 57,400. The salary range as a subcontractor is between € 48,000 and € 66,900. For employees looking for a job as a subcontractor, there are some vacancies in Berlin, Munich and Hamburg.

What exactly is a subcontractor?

A subcontractor is an independent contractor who receives orders from a general contractor (also: upstream main company).

Is a subcontractor an agent?

A general distinction is made between general contractor, client and subcontractor. The subcontractor is only obliged to the general contractor, as he acts as a vicarious agent according to Section 278 of the German Civil Code (BGB).

When is the subcontractor liable?

If the work of a subcontractor is defective and the building owner, with whom the subcontractor has no building contract, damages his property, the subcontractor is obliged to compensate for this damage.

What do you write on an invoice as a subcontractor?

According to this, the subcontractor’s invoice must generally contain the following information: Name and address of the subcontractor and the invoice recipient, tax number or VAT identification number of the subcontractor, date of issue of the invoice, unique and consecutive invoice number.

Who has to present the certificate according to 13b?

The regulation According to the new wording of Section 13b (5) sentence 2 UStG, the (sub) contractor can assume that the recipient of the service will provide sustainable construction work if he presents him with the VAT 1 TG certificate valid at the time of the transaction.

How much is the sales tax in the construction industry?

If a construction work or a work is accepted in the second half of 2020 (July 1, 2020 to December 31, 2020), the reduced sales tax of 16 percent applies. If the construction work is not accepted until January 1, 2021, 19 percent sales tax will apply again.

When does VAT not apply?

However, if the turnover is exceeded, the turnover tax must be paid later. The decision for the VAT exemption is binding for the freelancer for 5 years. A tax return must be submitted at the end of the year and all income must be taxed. According to § 4 UStG there is no sales tax for certain services.

When is no VAT charged?

The small business regulation according to §19 UStG states that you as an entrepreneur with sales up to a maximum of 17,500 euros net remuneration in the previous year and probably not more than 50,000 euros net remuneration in the current calendar year have the option of whether you want to show sales tax and are therefore liable for sales tax …

When is an invoice exempt from sales tax?

Accordingly, the entrepreneur can issue invoices without a VAT ID. However, this tax exemption is voluntary and not an obligation for the entrepreneur. Companies that meet all the requirements for being classified as small business owners can show sales tax on their invoices.

Can you deduct an invoice without VAT?

Invoice without sales tax due to small business regulation If you make use of the small business regulation, this means that you do not have to deduct input tax for limited sales per year, but do not need to add sales tax to your invoices.

What is not subject to sales tax?

The sales tax exemption for small businesses The decisive legal basis is § 19 Abs. 1 UStG. There it was stipulated: Small businesses whose turnover was less than 17,500 euros in the past year and will not exceed 50,000 euros in the current year are exempt from sales tax.

What does not subject to sales tax mean?

This means that as a small business owner you are not required to collect sales tax on your products or services. Since no sales tax is collected, no sales tax has to be passed on to the tax office.

Am I liable for sales tax?

“Deliveries and other services that an entrepreneur carries out in Germany against payment within the framework of his company” are subject to sales tax – this is what Section 1 (1) No. 1 UStG says. So if you are self-employed and demand money for your services or deliveries, you have to charge sales tax.

Who doesn’t pay sales tax?

The legal basis for this can be found in Section 19 (1) of the UstG. There it was stipulated that small businesses whose turnover was less than 22,000 euros in the past year and is expected to be less than 50,000 euros in the current year are exempt from sales tax.

What does VAT exempt mean?

If your company does not generate more than 30,000 euros in net sales in one year, you are exempt from sales tax (according to Section 6 Paragraph 1 Z 27 UStG). This exemption is determined by the small business regulation. However, you must include the information about the exemption on all invoices.

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