The German Federal Parliament has published the draft German Tax Act 2013 which also contains changes in the German VAT Act. It was adopted on 23 November 2012. The current draft of the German Tax Act 2013 suggests the following main changes in the German VAT Act.

  • Services that are rendered to legal persons, which perform business and non-business activities, and which are destined for the non-business activities, are to be taxed at the place where the legal person is located. Under the current version of the VAT Act, such services are taxed where the VAT business performing the service is located.
  • The invoicing requirements will follow the regulations of the member state where the service is to be taxed.
  • Invoices for tour operators or for margin taxation have to refer to specific wording indicating the application of the special taxation arrangements for such services.
  • For reverse charge services, the invoice must refer to the application of the reverse charge mechanism (“Steuerschuldnerschaft des Leistungsempfängers” – “tax liability of service recipient”).
  • VAT businesses which perform services that are taxed in another EU member state or that perform intra-community delivery of goods are obliged to raise invoices until the 15th day of the month which follows the performance of the service.
  • The input VAT recovery for intra-community acquisitions requires the goods to be physically shipped to Germany. VAT businesses which use a German VAT identification number and hence have to account for acquisition VAT in Germany are not entitled to claim the acquisition VAT as input VAT if the goods had been shipped to an EU member state other than Germany.