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Germany Social Insurance

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    Germany Social Insurance

    For those of you in Germany for more than just a few months I just wanted to point this out:

    http://www.scheinselbstaendigkeit.de...eit/index.html

    Basically if you're working for any length of time for one client and yuo don't have an employee, they can demand the social insurance of approx EUR 500 a month, and it seems very simple for them to decide in favour of paying this insurance. The onus would be on you to fight it, but there doesn't seem to be much you could do. They are now checking their records with a computerised search and anyone not paying "Sozialversicherung" will receive a form asking you to clarify why you are not paying.

    The criteria are:

    1)mainly 1 employer
    2) no employees (family doesn't count)

    Be warned, and be afraid.

    From what I see their strategy is pretty fool proof from their perspective. In fact you just have to take your hat off to them.

    There is a 4 year rule, so they only go back 4 years. The max you can expect to pay would be EUR 24000.

    An employee would cost you EUR 450 but you could get them to do some tax form filling out for you.
    I'm alright Jack

    #2
    what if, say for example, someone was working for 3months via a uk agency and also paid by the same uk agency (not enough to have to declare VAT equivalent in the country) and therefore would not show up on any german systems..
    The proud owner of 125 Xeno Geek Points

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      #3
      no we're talking a 12 months plus really.

      and check your VAT. Not paying VAT is second only to murder in the justice system. They really get serious with VAT.
      I'm alright Jack

      Comment


        #4
        i'll let my friend know but I'm 99% certain he found that total amount earned does not hit the VAT threshold
        The proud owner of 125 Xeno Geek Points

        Comment


          #5
          Best to try and avoid it.
          Advice is that the "mainly one" contract can be measured over the time you have been in business, not just for the year.
          I am not qualified to give the above advice!

          The original point and click interface by
          Smith and Wesson.

          Step back, have a think and adjust my own own attitude from time to time

          Comment


            #6
            Originally posted by BlasterBates View Post
            For those of you in Germany for more than just a few months I just wanted to point this out:
            Well I'm stuffed then having been here 20 years, actually I have a residents permit so it don't affect me thank Himmel...
            Brexit is having a wee in the middle of the room at a house party because nobody is talking to you, and then complaining about the smell.

            Comment


              #7
              Originally posted by chef View Post
              i'll let my friend know but I'm 99% certain he found that total amount earned does not hit the VAT threshold
              Yes this maybe the case if you're temporarily in Germany and do less than 6 months for a UK client.
              I'm alright Jack

              Comment


                #8
                Originally posted by The Lone Gunman View Post
                Best to try and avoid it.
                Advice is that the "mainly one" contract can be measured over the time you have been in business, not just for the year.
                I suppose so, in the end EUR 24000 worst case isn't the end of the world if they did get you. But you can apply to be exempt for a couple of years. However you can't apply for backdated exemption. So this is worth considering.

                I have to say I don't have any answers but I do now have the from the Pensions office, and a tax advisor telling me it is possible I may have to pay it; though I think because this was 4 years ago I'm in the clear.
                I'm alright Jack

                Comment


                  #9
                  In Bavaria, social insurance consists of not having too much pigment in one's skin and not being Jewish. I kid you not - the sound of marching boots rings yet in the air, there.

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                    #10
                    The only way you can be really sure that you don't have more than one Auftraggeber is to actually have two different ones at the same time. They compartmentalise your periods of "arbeitnehmer ähnliche selbstangigkeit". Of course there is no hard and fast rule here which makes it difficult.
                    I'm alright Jack

                    Comment

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