FAQ - VAT tax

Because Smart is subject to VAT and the invoice is issued via Smart and not with your private tax number.

Smart is subject to VAT. Whether a service is subject to the regular VAT rate (19%) or the reduced VAT rate (7%) is defined by the German VAT Act. At the end of the order creation process in the Smart Portal, you will be shown which tax rate applies to your service.

Services with the reduced VAT rate (7%) are, for example:

• Transfer of rights (rights of use, license fees...)
• Tickets for theaters, concerts, museums
• Performances by performing artists comparable to theater performances and concerts (§ 12 para. 2 no. 7a UStG) 

For certain teaching activities, Smart can invoice without VAT. This is only possible for employees of Smart Bildungswerk.

If the client is a company in another EU country with an international VAT ID number, the invoice is issued without VAT (reverse charge principle). If the client does not have an international VAT ID number, it is assumed that they are not a business but a private person- the invoice is therefore issued with German VAT. 

If the client is a company in a non-EU country, the invoice is usually also issued without VAT. In this case, we do not need the client's VAT ID number, but there must be other indicator of a business structure (e.g. a website).  

If the client is a private person abroad, we must check whether Smart can invoice the service. Certain services to private individuals cannot be invoiced by Smart if the services are actually provided abroad. This applies, for example, to artistic services and teaching services that are physically provided abroad or received online abroad. If the service can be processed, there applies a German VAT rate.