contract-law tax-law germany
Fine and contract-renew after NOT receiving an invoice
<p>First things first, let's provide a little bit of background to my question:</p>

<p>3 Years ago I moved to Germany, where I pay my taxes. Since the first year I didn't understand very much about this topic, I decided to turn to a "Verein" that managed my tax-declaration.<br>
During the first year I had a lot of contact with the guy working there, therefore I simply asked how could I pay and he gave me an invoice, which I paid.</p>

<p>The second year I no longer needed the "Verein" services and I simply did not ask the guy to submit my tax declaration. Absolutely no communications were sent from both sides.</p>

<p>During the third year I received an invoice from the "Verein", stating that I had to pay the sum due for the second year, plus a fine, because I didn't pay them before (how was I supposed to? They didn't send me anything - and the payment is based on people's income). Since I was not willing to have arguments, I paid and asked to terminate what I found out to be our contract right at that moment.</p>

<p>The woman I spoke to, told me that it would not have been possible before the end of the third year, and since it already started, and I needed to honor my part of the contract and pay for that year too.</p>

<p>There is more than one problem with this contract, I don't have any copy, and I am quite positive that if I did receive the invoice on time (2nd year), I would have understood that I was under a binding obligation, and therefore would have asked to terminate the contract as well <strong>before</strong> having to pay for another year.</p>

<p>Am I under any obligation to honor that payment, provided that I never received their invoice for the second year within an acceptable timing?</p>

<p>It's hard to say what you are obliged to if you cannot check the contract. All I can say is that, in Germany, contracts that are automatically renewed each year unless you cancel them on time do exist and they are legal.</p>

<p>As far as the damages for delayed payment are concerned, you can usually only impose them after a reminder. That has exceptions too, so, again, being able to check your contract would be helpful.</p>
