Supply of goods – Local reverse charge on specific goods

Reverse charge mechanism has been implemented in the German VAT Act [since 01/10/2014] and is applicable under conditions for domestic sales of mobile phones, tablets computers, games console and precious and non-precious metals.

Member State may provide that the person liable for the payment of VAT is the taxable person to whom the supplies of goods or services as listed are made [art. 199 and sub. of the VAT Directive].

Export of goods – Documentation requirement - ATLAS

Companies must hold an electronic statement from “ATLAS” (Automated Tariff and Local Customs Clearance System) to prove the effective export of the goods outside the Community. The Electronic Export Certificate [Ausfuhrvermerk) is considered to be a sufficient proof of export, irrespective of whether the goods are transported or dispatched. Other documentation (e.g. airway bills, freight forwarder certificates, etc.) should however be accepted under exceptional circumstances.

Member States shall exempt the supply of goods dispatched or transported outside the Community by or on behalf of the vendor or by or on behalf of a customer not established within their respective territory. The exemptions provided for in the VAT Directive shall apply without prejudice to other Community provisions and in accordance with conditions which the Member States shall lay down for the purposes of ensuring the correct and straightforward application of those exemptions and of preventing any possible evasion, avoidance or abuse [Art. 131 & 146 of the VAT Directive].

Conference organizer - New administrative guidelines

The German VAT authorities have published new administrative guidelines clarifying the VAT treatment of services provided by a Congress center. The VAT treatment applicable to trade fairs exhibitions is now also applicable to congresses. In case at least three other services are provided in accordance with a contract in addition to the transfer of use of stand spaces, the services will be considered as a single service taxable where the recipient is established according to general rule.

However, this rule will not apply to hotel accommodation and catering services [which are treated independently and remain taxable in Germany]. The new rules are applicable from 01/06/2015.

The full text of the administrative guideline [in German language] is available on request.