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.

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