In the last years, I have been following some threads here about working as a contractor in Germany, and the problems that the German tax office, the "Finanzamt", loves to create to foreign workers. I have myself worked as a contractor in Germany for many years, and would like to warn all other foreign contractors about the "witch-hunting", ruthless behaviour, and illegal actions, according to international laws and human rights, that the Finanzamt are more than willing to apply on foreign workers - and also on their own people.
During my time in Germany, I was using a well-kown and respected non-German umbrella company/management agency that had contractors working there for several years. There was never any problems at all until one day, when the Finanzamt suddenly decided that the agency "was based in Germany", which is not true, and that it was liable to pay back the VAT to Germany for all the contractors that it employed. The agency got hold of some good lawyers that have proved that the Finanzamt was wrong. The Finanzamt, being frustrated because they could not get the VAT "back" from the foreign agency, went after the contractors, including me. In this case, I am convinced that the agency and its lawyers got it right and that the Finanzamt got it wrong. The problem is that the Finanzamt is not willing to accept the fact that they are wrong. In the socialistic Germany, it does not matter if you are right. Apparently, only the government agencies, like the Finanzamt, are *always* right because they make their own laws, ignore international laws, and you are a nobody within their country borders. Reason: The socialistic regime in Germany uses the Finanzamt heavily as their milking cow. No matter how, they are desperate to suck as much money as they can, legally or illegally, to feed their regime, and to pay for their astronomically costly bureaucracies, like the Finanzamt.
I know about one contractor who worked for a long time in Germany, and was about to start on a new contract there. He was also one of the unfortunate ones that did receive a letter from the Finanzamt asking for the VAT for all the previous years that he worked there under the mentioned agency. One day, the Finanzamt froze his bank account, without giving any reason whatsoever. He did not even receive a bill or a warning about having to pay back the VAT. It came just suddenly and unexpected. A few days later, his account was emptied by the Finanzamt. They just confiscated the funds in his personal bank account, still without sending him any bills or payment orders. And yes, there was nothing wrong about the funds in his bank account as it was salary and savings paid legally in Germany. Understandably enough, he decided to cancel the new work contract in Germany, and is avoiding any contract jobs there.
I know many contractors who have worked in Germany, and also other people who live there, and the stories that I have heard about the Finanzamt are true and very scary. Many of the tactics used by the Finanzamt are immoral, and most likely illegal in civilised countries. I know about two cases of people who live in Germany, are not wealthy, and struggling with their finances. Still, because they owed some €400, the Finanzamt froze their bank accounts and confiscated anything left in the accounts, making their lives even more miserable. In a civilised country, no government will freeze your bank account unless you are a *major* criminal. The way the German government behaves is uncivilised, ruthless, and immoral. Unfortunately, the German government has not changed much in their behaviour from the Nazi days or from the Stasi days. Germany IS a police state, and I could write a long list of what I know about Germany that makes it this Nazi-Stasi police state.
For all the contractors out there: Think twice before going to Germany.
-MonaLizzard-
During my time in Germany, I was using a well-kown and respected non-German umbrella company/management agency that had contractors working there for several years. There was never any problems at all until one day, when the Finanzamt suddenly decided that the agency "was based in Germany", which is not true, and that it was liable to pay back the VAT to Germany for all the contractors that it employed. The agency got hold of some good lawyers that have proved that the Finanzamt was wrong. The Finanzamt, being frustrated because they could not get the VAT "back" from the foreign agency, went after the contractors, including me. In this case, I am convinced that the agency and its lawyers got it right and that the Finanzamt got it wrong. The problem is that the Finanzamt is not willing to accept the fact that they are wrong. In the socialistic Germany, it does not matter if you are right. Apparently, only the government agencies, like the Finanzamt, are *always* right because they make their own laws, ignore international laws, and you are a nobody within their country borders. Reason: The socialistic regime in Germany uses the Finanzamt heavily as their milking cow. No matter how, they are desperate to suck as much money as they can, legally or illegally, to feed their regime, and to pay for their astronomically costly bureaucracies, like the Finanzamt.
I know about one contractor who worked for a long time in Germany, and was about to start on a new contract there. He was also one of the unfortunate ones that did receive a letter from the Finanzamt asking for the VAT for all the previous years that he worked there under the mentioned agency. One day, the Finanzamt froze his bank account, without giving any reason whatsoever. He did not even receive a bill or a warning about having to pay back the VAT. It came just suddenly and unexpected. A few days later, his account was emptied by the Finanzamt. They just confiscated the funds in his personal bank account, still without sending him any bills or payment orders. And yes, there was nothing wrong about the funds in his bank account as it was salary and savings paid legally in Germany. Understandably enough, he decided to cancel the new work contract in Germany, and is avoiding any contract jobs there.
I know many contractors who have worked in Germany, and also other people who live there, and the stories that I have heard about the Finanzamt are true and very scary. Many of the tactics used by the Finanzamt are immoral, and most likely illegal in civilised countries. I know about two cases of people who live in Germany, are not wealthy, and struggling with their finances. Still, because they owed some €400, the Finanzamt froze their bank accounts and confiscated anything left in the accounts, making their lives even more miserable. In a civilised country, no government will freeze your bank account unless you are a *major* criminal. The way the German government behaves is uncivilised, ruthless, and immoral. Unfortunately, the German government has not changed much in their behaviour from the Nazi days or from the Stasi days. Germany IS a police state, and I could write a long list of what I know about Germany that makes it this Nazi-Stasi police state.
For all the contractors out there: Think twice before going to Germany.
-MonaLizzard-
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