Cross-border services

In certain cases, you will need to report the cross-border activity. It depends on whether you are pursuing a non-regulated or regulated profession:

Unregulated professions

If you wish to offer a service in a non-regulated profession in Germany, you can do so without prior notification to the competent authority. In the case of non-regulated professions (e.g. [non-licensed crafts and craft-like trades] (https://www.zdh.de/daten-und-fakten/handwerksordnung/gewerbe-anlage-b1-und-b2/), access to or pursuit of the profession is not subject to any specific state qualification requirements. This means that the profession can be exercised without state approval.

However, this does not apply to services in areas that are excluded from the European Services Directive. These include, but are not limited to, healthcare, financial services, taxes, transportation and gambling. In order to be able to operate independently in these areas, authorisations and permissions from the competent authorities are required.

Regulated professions

If you have the required qualification, you do not need to obtain authorisation to pursue your profession in regulated professions. Instead, you must notify the intention to provide the service to the authority that would also be responsible for recognising the professional qualification. This would be the case, for example, for craft activities the Handwerkskammer, for architects the Chamber of Architects, for veterinarians the Chamber of Veterinarians.

You can then carry out your activity immediately. The notification is usually to be repeated informally every twelve months, as long as you continue to intend to provide services. Substantial changes in circumstances concerning the conditions for the provision of services must also be notified in writing to the competent authority and substantiated by documents.

On the [European Commission] website (https://ec.europa.eu/growth/tools-databases/regprof/home) you can find out in German, English and French whether your activity is a regulated profession.

Documents to be submitted

• completed application form
• Proof of nationality: Copy of identity card or similar identification document
• Proof of legal establishment: Proof of registration or other proof of your legal establishment in the country of origin (e.g. extract from the trade register)
• Proof of professional qualification: If the profession in the State of establishment is linked to a professional qualification, proof of the professional qualification must be provided. If the profession is not linked to a professional qualification, you will need proof that the activity has been carried out in the State of establishment for at least two years in the last ten years.

Proofs are, for example, master certificates or so-called EU certificates. With the EU certificate, for example, German craft entrepreneurs prove that their business has been registered with the Chamber of Crafts since when and for which craftsmanship.

Exceptions apply to the following craft professions:

• Chimney sweeps
• Ophthalmologists
• Hearing care professionals
• Orthopaedic technicians
• Orthopaedic shoe makers
• Dental technicians

For these professional groups, the competent Chamber of Crafts can check your professional qualification if you want to provide the service for the first time. The purpose of the audit is to eliminate a serious risk to the health or safety of recipients of services due to insufficient qualifications.

These professions may not be pursued until the Chamber of Crafts has issued the following:

• Confirmation that the professional qualification is sufficient
  or
• notice that the professional qualification is not being tested

The documents may be submitted electronically. In the event of reasonable doubt as to the authenticity of the documents submitted, the competent authority may request the service provider to provide certified copies.

The documents (excerpts from the register, certificates and deeds) must be translated into German. Translations must be provided by [sworn interpreters and translators] (https://www.justiz.nrw/courts_authorities/addresses/interpreters__u_uebersetzer/index.php).

Posting

Employers based abroad who send one or more employees to Germany to carry out work or services must observe various rules regarding the reporting of their employees. Among other things, they must be reported to customs. You can easily do this online. In addition, other minimum working conditions (minimum wage, time sheets) must be observed in Germany, which are referred to by customs on [its website] (https://www.zoll.de/DE/company/employer/employer-with-seat-outside Germany/minimum working conditions/minimum working conditions_node.html).

Temporary employment

If you want to transfer temporary agency workers to a hirer in Germany, you need a German permit for temporary employment.

Important laws

The following laws are particularly relevant with regard to the posting of workers and temporary employment:

• Arbeitnehmer-Entsendegesetz (AEntG)
• Arbeitnehmerüberlassungsgesetz (AÜG)
• Arbeitszeitgesetz (ArbZG)
• AEntGMeldstellV
• AÜGMeldstellV
• Minimum Wage Act (MiLoG)
• Minimum Wage Documentation Obligations Ordinance (MiLoDokV)
• Minimum Wage Reporting Ordinance (MiLoMeldV)
• Mindestlohngesetzmeldestellenverordnung (MiLoGMeldStellV)
• VAT Directive 2006/112/EC

If you employ your employees in Germany, you must comply with German tax regulations and bilateral agreements (double taxation agreements). An overview of existing double taxation agreements can be found [here](https://www.bundesfinanzministerium.de/Content/DE/Standard Articles/Topics/Taxation/International_Tax Law/State-Related_Information/double taxation agreements.html).

Wage tax

The 183-day rule applies: If employees stay in Germany for more than 183 days per calendar year, they are subject to payroll tax here.

VAT

Deliveries of goods to companies across EC internal borders are normally treated as tax-free intra-Community supplies in the country of origin. However, in the country of destination, the goods must be subject to VAT by the purchaser.

Construction and extension services provided on a property in Germany are subject to German VAT. Therefore, you should check whether registration with the tax office is necessary. Which tax office is responsible for you depends on the location of the branch.

A list can be found here.

Anyone who works as an employee in Germany is generally subject to the German social security obligation. Exceptions may apply in the case of cross-border work. Examples of this are if the employees work only temporarily in Germany, but are actually employed abroad, or if they are employed in several countries.