Be Aware: If you operate a business in Germany, German law applies. It does not matter whether your business services exclusively Americans or ID card holders!


Registering Your Business

Before starting your business, you must register it with the local German trade office (Gewerbeamt). Depending on where you consider your location of business to be, the Gewerbeamt is either located at a Rathaus or at the Verbandsgemeinde (town hall).

You will be asked to fill out a questionnaire. The trade office will inform the German finance office (Finanzamt) about the new business by forwarding a copy of your registration, since you will be subject to paying German taxes. A registration fee will be charged. The trade office will also inform you of any permits you may need to be allowed to open your business. If your business is located on a military installation, you also need the permission of the installation commander.

Paying German Taxes

Once the German finance office receives your business registration, you will be assigned a tax ID number (Steuernummer). You may want to consider hiring a German tax advisor (Steuerberater) who can advise you on how to properly keep track of all your expenses and income, and how much taxes may have to be paid. The Air Force does not have the authority to provide advice on German taxes.

Customs



It is illegal to use your military privileges for your private business! For example, your APO mailing address and your USAREUR plated car may not be used for private benefits. It is a violation of customs regulations. You must use your German living address as well as German license plates. For more information, check with the German customs office (Zoll), 0631-316520, or MP Customs at Kaiserslautern, Kleber Kaserne, DSN 483-7383.

Residence permit/Work Permit

If you are active duty military, a dependent or a member of the civilian component, you do not need to obtain a residency permit (Aufenthaltsgeneh-migung) or a work permit (Arbeits-erlaubnis) to operate your business because of your SOFA status IAW Art. 6, para 1 of the Supplementary Agreement and Art. 1, para 2a of the SOFA. Once no longer connected to the armed forces, you must obtain these permits.


However, all Active Duty personnel are required to have any potential Off-Duty Employment approved by command-- even if you are on terminal leave. Contact the legal office or your shirt for information about Off-Duty Employment while on Active Duty.

Depending on what kind of service you intend to provide or what kind of business you would like to operate, certain permissions may be required before you can even start your business. If your business is considered a handicraft, you may also want to consult the Chamber of Handicrafts (Hand-werkskammer) to get more information (0631-36770). If you are dealing with food items, you should also contact the German health authorities (Gesundheitsamt). 

i'm glad someone finally got all of this together and posted the information. i know there are a lot of people who violate most or all of the rules, regulations, and laws you mentioned. if you try to say anything they get very rude. one thing people have to consider is once you register your business there are many other agencies that want to get your money too.

the suggestion to get a tax lawyer is a good one. most tax lawyers will work with you without you needing to pay a yearly fee. they will be your tax advisor and do your taxes for you and any costs are normally paid at tax time from what i've heard from the people i know who have private businesses. 

Thank you for this information! :D 

It was copied straight from Facebook.

I guess Lejla forgot to mention that for others who may want to go look for additional info. 

The gal at the Pampered Chef party last night said they don't have to do any of this. That may be a better option if you don't want to jump through all of those hoops 

She is uninformed because she does.... 

A lot of people already had contacted legal when they PCS'd in and they were told that what they were doing is ok. I wonder what is going to happen with situations like that? 

A lot of people already had contacted legal when they PCS'd in and they were told that what they were doing is ok. I wonder what is going to happen with situations like that? 

I dont know because I contacted legal and I actually went in for a sit down appointment as well and they say it is all illegal without the base commanders permission and he will not give permission for ANY direct selling because it comes to an APO box one way or another..wether the person ships to the customer or themselves. The only way it would be legal is for them to ONLY have US clients that live in the US...and that is just silly. The whole things is extremely frustrating and I wanted answers..Legal (JAG) says that direct selling businesses are not legal here that is why the post offices monitor the packages. Most likely people are choosing to believe what someone else is telling them vs. actually calling legal themselves and getting the straight answers...No one intentionally wants to break the rules I am sure but they really are. I know someone who just got in trouble for having a home based business. I am not trying to sound pushy or hasty about the topic..I am just trying to give people truthful information. I have asked the questions and then asked again and both times was given the same answers. For what ever reason they (German Customs) have decided to crack down on it. 

Thank you for that info. So, can people receiving items from one of the parties also get in trouble if they ship them from the states (direct shipping from the factory/main company)? There was something that a gal was saying that was about that being one of the reasons that some of these businesses are ok, because the orders get taken here and then direct shipped from the states to each customer, not to the hostess or the small business owner/demonstrator is that ok then? 

I think the probelm lies with the person who is recieving whatever profit from that sale living here in Germany and not paying the required taxes. 

No, Kristen. Even if the business ships directly to the customer, the person selling is in the wrong. The customer will not get in trouble for receiving the product, though. 

ok thank you 

So if they pay German taxes then there should not be a problem right? I'm just trying to find out if I need to be ordering from my friends in the states or my neighbors here. I'd would prefer to order from the gals here since the one's I know don't work outside the home and the the one's back home do. BUT let me be clear I do not want to get anyone into trouble so as a customer I want to know what is the proper way for me to order my goods. Thanks :) 

it sounds like if your neighbors are selling they are going to be the ones seeking legal advice and it should not affect you at all--at least that is what I understand here 

what she is asking is if she should order form her friends in the states so her friends here don't get in trouble...


and to that I say.. buy from your friends here, they aren't going to stop till they get in trouble anyways. Most of them anyways 

yes, I understand, I worded my reply wrong.........I meant to say it is 'on the seller' to make sure the legalities are on the up and up, not on her......so it should not reflect on her..........

I hope that no one else gets in trouble........:( 

I understand I wouldn't be the one in trouble but contributing to something illegal doesn't usually settle well with me just because I won't suffer any of the negative actions.

It all seems a little confusing to me...how do I as a customer know who is doing business the legit way and who is not? I need to do more research on this. I do not understand why people would be given the option to go through the process of getting permission to run a hhb if there is no way for them to run the business without breaking some part of the law? 

it is very confusing 

The way I see it, and I am waiting on clarification from the Legal Office (My wife sells Sentsy), if you live on base, you must have the base commanders permission to run any home business. Off-base, you just have to register with the German officials and pay any applicable taxes to the Germans.

a2900765uu keeps saying that the base commander won't give permission, which may be true, but that only would affect those living in base housing - probably because they do not have a German Address to use for their business (unless they rent a place off base) mail.

As far as receiving stuff you order, as long as it comes directly from the company to your APO (and is not a prohibited or restricted item) and it is for your personal or domestic use or consumption, then it would be okay. (See AE Reg 550-175).

It is the sellers or business owners responsibility to ensure they can legally operate or work in Germany. There really is no way short of asking them directly, if they can. 

they say it is all illegal without the base commanders permission and he will not give permission for ANY direct selling because it comes to an APO box one way or another..wether the person ships to the customer or themselves. The only way it would be legal is for them to ONLY have US clients that live in the US...and that is just silly.

Let say I run a Pampered Chef Business and live off base. Are you saying that if someone places an order from me, I cannot have the merchandise sent from the US directly to their APO Box? This Handout from the legal folks at 21st TSC Staff Judge Advocate says:

"The MPS may not be used to send or receive any parcels or correspondence related to the HBB ( This does not preclude customers from receiving goods ordered through a HBB and properly mailed directly to individual customers by a company through either US or HN Mail System )."

Not sure about the Army, but the Air Force Instruction AFI 32-6001 states:

"2.13. Commercial Activity in Family Housing (FH). Limited commercial activity that can be properly carried out from a FH unit is allowed. Commercial activity is defined as a business enterprise conducted for profit by family members assigned to a FH unit (DoDM 4165.63).
2.13.1. Activities may involve direct sales of products, minor repair service on small items, incidental services, tutoring and limited manufacture of items.
2.13.2. Sale of specific brand name merchandise not available in military exchanges is not construed as competition with installation officially sanctioned commerce.
2.13.3. The member submits a written request to conduct commercial activity in assigned FH to the Housing Flight Chief. The Housing Flight Chief forwards request to the Commander for approval. Approval is required before business start-up.
2.13.4. The following policies apply:
2.13.4.1. Commercial activity may not be authorized or continued at the expense of community tranquility, safety or the installation mission.
2.13.4.2. Local government licensing requirements, agreements, host nation business practices and advertising practices are taken into account as each request is considered. The member is responsible for obtaining necessary licenses." 

interesting 

I dont give a damn if my cake lady is making a profit doing what she loves...

It just sounds like jealousy of not being able to be creative or ambitious... And this is the main reason I do not like living in a big base community like this... there are way to many negative people here...

Fight on entrepreneurs, fight on... 

Military Wives Anthem of the day...

http://www.youtube.com/watch?v=lDyUhI1ArPo 

Fight on entrepreneurs, fight on...

Ditto:) 

I wonder if the people getting busted are because of the bazaars and RYS and such ? 

I wonder if the people getting busted are because of the bazaars and RYS and such ?

I am guessing Kristen is partially right. The fact that HBB can take profits away from our beloved AAFES or other programs, is reason enough to make HBB against the rules.

If they can't keep their prices in check, and HBB sells for less, places like AAFES needs to re-think the way they do business and leave small entrepreneurs alone. 

I don't think it has anything to do with safes, I think it has to do with the SOFA agreement with Germany, as well as the apo mailing restrictions that nobody listens to.

If you run a hbb in Germany, you are also supposed to pay German taxes. If you aren't, you are wrong.

Nobody is jealous of the scented wax or vibrators that get sold, nobody is jealous over overpriced kitchen cack, the reasoning has to do with legal requirements. We can get similar products online for a lot less money, were we so inclined.

In the states, you have to follow health code regulations to sell food products, why should it be any different for cake bakers here? 

Mojo - It is not just about cake bakers. It was posted in another discussion (http://www.ramsteinunderground.com/topic.jsp?topicId=11647521) that it is against the rules to sell anything that competes with AAFES. How can you say it has nothing to do with AAFES? It also mentions MWR and NAFI. If it has nothing to do with AAFES, MWR, or NAFI, why would the rules specifically say that only the sale of goods NOT available at these places is permissible? This would be like someone telling me I can't open a hair salon because there is a hair salon at AAFES.

So much for free enterprise!

Here it is again:

 

Nobody is jealous of the scented wax or vibrators that get sold, nobody is jealous over overpriced kitchen cack, the reasoning has to do with legal requirements. We can get similar products online for a lot less money, were we so inclined.

In the states, you have to follow health code regulations to sell food products, why should it be any different for cake bakers here?

All of these things were started out of building comraderie and a American community overseas being away from home...

If I trust my cake lady to make me a cake for my family to consume that is my business... And if I just happen to pay her for making a cake that AAFES or the Commissary cant make that is my right too... Its bad enough we get gouged by the Euro rate and bent over at the BX by the over the top prices... If my wife wants to get candles or adult toys from a lady who takes the time to do something instead of sit on the couch and eat Little Debbie snacks all day, I'm all for it...

Was there not just a thread about Germans shopping on base??? Everyone was up in arms about seeing locals in the Commissary and BX shopping... And what do you think they are trying to do? Avoid GERMAN taxes on purpose!!!

There are no spouses trying to evade anything... If anyone really cared you would volunteer to stand at the BX door and card every person walking in the joint... PUH-LEASE!!!