In VAT law, a decisive distinction must be made between deliveries and other services. The existence of such a requirement is a prerequisite for VATability – i.e. the basic application of the VAT Act (UStG). The performance of the service must also be carried out in Germany, by an entrepreneur and within the framework of his company. Let’s take a closer look at the requirements to be met!
The differentiation between delivery and other services is one of the most decisive in the entire VAT law. Almost all standards (with the exception of import and intra-Community acquisition) are based on the corresponding designations. According to § 1 (1) no. 1 UStG, all deliveries and other services carried out by an entrepreneur in Germany are taxable.
“Controllable” is clearly distinguished from “taxable”. Because the term only means that a situation due to its domestic location is in principle taxable in Germany. Whether the Treasury actually makes use of this taxation right is then determined by the tax exemptions of § 4 UStG – if a turnover falls under this standard, it does not incur any sales tax in whole or in part.
In addition to deliveries and other services are also subject to § 1 (1) no. 4 and 5 UStG
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.