German VAT compliance changes January 2013

The German VAT place of supply for a number of services is set to change on the 1 January 2013.

Services paid for by a company, but provided for staff members’ use and enjoyment will now be taxed in Germany.

The rules around the supply of long term car hire are set to change following the implementation of the latest German VAT Act.

From January, the place of supply of hire of cars to consumers will switch from the location of the supplier to the location of the hire/customer.  This follows the changes to the rules of place of supply for most other services following the 2010 VAT Package.