Country overview: GermanyPlace of Supplies of Services (PoSS) rules in 2010 |
| Germany | |
|---|---|
| Significant changes between draft law and Directives? | No |
| Use and enjoyment rules for B2B transactions? | Yes |
| Force of attraction rules regarding PE's? | According to the new legislation a foreign company who undertakes a PE in Germany is basically not considered as “non-resident” VAT entrepreneur and therefore the Reverse-charge mechanism is not applicable with regard to output services that are taxable in Germany. However, in case the PE is not involved into the concrete supply of service, then the foreign company is considered as “non-resident” VAT entrepreneur and therefore the Reverse-Charge mechanism is applicable for services carried out by the foreign company to VAT entrepreneurs or public bodies. |
| Do sanctions apply for failing to report reverse charged services? | Yes, within the scope of the ESL filing procedure. |
| Projected time period for ESL's for services? | Current legislation: Quarterly filing. Within the scope of current legislation activities (“3. Umsatzsteueränderungsgesetz”) it is expected to amend the ESL filing deadline from a quarterly basis to a monthly basis unless a (quarterly) threshold of 50,000 Euro regarding EU supplies of goods is not exceeded. |
| Do thresholds apply to ESL's for services? | Current legislation: Quarterly filing. Annually filing is accepted in case the German tax authorities release the taxpayer from the obligation to file monthly/quarterly preliminary VAT returns and the sum of supplies of goods/services in the previous calendar year did not exceed 200,000 Euro and will not exceed 200,000 Euro in the current calendar year and the sum of EU supplies of goods (excluding EU supplies of new vehicles) and supplies of services for which the recipient is liable for VAT did not exceed 15,000 Euro in the previous calendar year and will not exceed 15,000 Euro in the current calendar year. |
| ESL filing deadline? | Currently, 10 days after end of reporting period (quarter; amendment to month). However, it is planned to extend the deadline to 20 days (e.g. the ESL filing deadline for January 2010 will be 20 February 2010). |
| Do sanctions apply for late/incorrect submissions of ESL's for services? | Yes |
| ESL for services format already published? | No |
| Projected time period for ESL's for goods? | Quarterly. With regard to the expected amendment see above. |
| Do thresholds apply to ESL's for goods? | See above |
| ESL filing deadline? | See above |
| Impact on e-filing procedure? | No |
| VAT return adapted? | Yes, however details are not published yet by the Federal Ministry of Finance. |
| Final date for 8th Directive refund requests is 30 September? | Yes |
For further information, please contact Paul Bakker, DTT Global Indirect Tax Coordinator, or one of the Deloitte member firm contacts listed in the Overview of Member State legislation and materials.
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