- For Companies
- Payments
In this article...
Payments
- How to add a payout (non-recurring income) for employees?
- Where can I find a detailed breakdown of the payroll costs?
- How can I request contractual changes: salaries, titles, extensions and others?
- What does "Regularization" mean?
- How can I pay to a local bank account?
- How does Horizons handle currency conversion or foreign exchange rates?
- What do the items on the Horizons Payroll and Service Fee Invoices mean?
- Why can the fees and payroll change monthly?
- Where can I access invoices to my company?
- How to work out Salary Prorata pay for employee?
- Where can I access my company’s billing information?
- How to manage the Finance Contact to receive invoices in PDF copies from Horizons?
- What are Billing Groups and how to add them?
- Can I review global payroll reports in my billing currency?
- How to Export a Payroll Report for Review and Approval
- How to change a team member's billing group assignment?
- Understanding VAT Charges for German Entity Contracts
- Does Horizons provide an advance payment option for clients?
- What are the different types of invoices issued by Horizons?
- What is the Late Payment Fee Invoice?
- What is Horizons’ annual upfront pricing model?
Understanding VAT Charges for German Entity Contracts
When entering a contract with New Horizons Global Partners Germany GmbH through your German entity (e.g. GmbH, AG, UG, or other), a 19% value added tax (VAT), referred to as Umsatzsteuer (USt.), is levied on the total invoice amount, including both payroll charges and service fees.
It's noteworthy that payroll costs aren't exempt from VAT because you're acquiring an 'employer of service'. This arrangement mirrors Germany's AÜG setup (Arbeitnehmerüberlassung), where a similar 19% VAT applies to the entire payroll invoice of leased employees.
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