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New German Tax Act introduces VAT compliance changes

  • VAT
  • 21 January 2013 | Richard Asquith

New German Tax Act introduces VAT compliance changes

At the end of last year, Germany approved a new Tax Act with a number of changes to the German VAT compliance regime.

The principal changes to German VAT compliance were as follows:

  • Where the German reverse charge is being applied, invoices must clearly state that it is being used and that include the following phrase to indicate so: “Steuerschuldnerschaft des Leistungsempfängers”
  • Provider of tours in German using the special tour operator margin scheme must clearly indicate on invoices that they are applying this system
  • The correct VAT invoice disclosure rules is now to be the country of supply – reflecting the shift in the place of supply rules for services in 2010.
  • The place of supply for services to VAT registered business for non-taxable activities is switched from the location of the supplier to the location of the customer.
  • Invoices on intra-community supplies must be raised by the 15th of the month following the supply.

All of the above changes are effective from 1 January 2013.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.