The correct determination of the place of performance is an essential prerequisite for the correct VAT taxation in cross-border service relationships. The principle of location applicable to real estate-related services repeatedly raises demarcation issues, as shown by the present judgment of the Federal Fiscal Court. The distinction is always important when the recipient’s seat and the property in question are located in different countries. The case concerned whether consulting fees are subject to German VAT as real estate-related services.
Source: umsatz-steuer-beratung.de
