Photo By Lisa Bishop | WIESBADEN, Germany - While Oliver Caballero, age 6, is not subject to HBB regulations...... read more read more
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WIESBADEN, Germany – Earning income from teleworking, a small business or a multi-level marketing venture in Germany is accompanied by the requirement to register with the host nation and as a home based business with U.S. Army Garrison Wiesbaden.
The lengthy HBB process is not typical for a United States business owners. For many U.S. entrepreneurs, small businesses can be established as sole proprietorships with taxes being filed on personal returns at the end of each year; and for teleworkers, income and taxation is handled like all other forms of employment.
The HBB process for USAG Wiesbaden has three primary requirements: obtain a German tax identification number, register the business with the local German government and complete the garrison HBB application. Each of these steps has a series of requirements and challenges.
“Businesses that do 100% online business and have no clients in person only need to register with the host nation,” said Rick Iglesias, home based business and private organizations liaison. This directly applies to teleworkers, even if the employer is a law firm with no physical presence in Germany.
“If you sell products or offer services in person, you have to register with the host nation and the garrison,” Iglesias added. This broad requirement even applies to multi-level marketing companies where individuals host parties for the sale of products.
For the German government, the tax identification and registration addresses tax liability and potential regulatory requirements. “Depending on the type of business, there might be a license or certification requirement,” said Iglesias. For example, food businesses must be inspected and doulas need German certification. SOFA status does not exempt an individual from host nation rules according to Iglesias.
Owners are also required to file and pay German taxes. Much like the United States, the rates vary based on the amount of income or profit. Iglesias acknowledges that the tax requirement feels unfair, but points to the potentially harsh consequences of failing to honor host nation tax laws, including potential fines.
Once a business owner has established the correct German credentials, the garrison approval process allows the individual to solicit sales to the garrison community and insures compliance to garrison regulations and LQA rules. The application also gets approved through legal.
The garrison application requires business owners to submit a business plan, agree to restrictions on the use of APO, commissary and Exchange services within business operations and to carry liability insurance.
Teenagers who babysit, tutor, walk dogs or cut lawns to earn a few extra dollars are the only exemption to the HBB requirement, according to Iglesias. Adults who perform the same services must register.
Iglesias said there are numerous benefits to completing the process. “You can sell or offer your business on the installation, you can advertise on post, and would be complying with all host nation laws and Army requirements,” he said. “Additionally, there are new transfer policies in place so when a military family PCS moves, we can send the HBB information to the new garrison to make the transition easier.”
Earl McFarland, the employment readiness program manager at Army Community Service, views home based businesses as a viable employment option, especially to spouses. Within the military, spouses experience up to a 24% unemployment rate and are often underemployed. “Getting started can be challenging,” McFarland said.
McFarland and Iglesias encourage potential HBB operators to take their time, review the application packet and seek assistance in the process. “There is a lot of additional information and samples included in it to help you get started,” Iglesias said. “If you are unsure where to start or what to do next, you can contact either Earl McFarland at ACS or myself. Additionally, there are HBB groups online that also provide advice and help.”
While it is tempting for newcomers to skip the process and operate quietly without approvals, there are consequences to conducting income-generating work without proper authorizations. “For not registering on the host nation side, you can be faced with severe fines and penalties from the German government along with having to pay back taxes,” Iglesias said. “For the garrison, you and your business could be barred from post, affect your LQA for civilians, and the unauthorized HBB would be turned in to customs office for investigation.”
For more information regarding HBB rules, policies AR210-70 and AER 210-70 address Army regulations. Iglesias and McFarland can be reached for the application packet and assistance via email at ricardo.iglesias.civ@mail.mil and earl.j.mcfarland.civ@mail.mil.
A list of currently approved home based businesses is available on the garrison website at https://homeadmin.army.mil/wiesbaden/index.php/about/Garrison/HBB.
| Date Taken: | 07.20.2020 |
| Date Posted: | 07.21.2020 06:53 |
| Story ID: | 374195 |
| Location: | WIESBADEN, HESSEN, DE |
| Web Views: | 475 |
| Downloads: | 1 |
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