- The Reverse-Charge procedure according to § 13b UStG is essential in practice but can lead to errors
- Errors often occur when it is unclear if a service falls under § 13b UStG, especially in the private sector
- Advisors should pay special attention to informing clients about the transition of tax liability to the service recipient to avoid costly mistakes
- Services covered under § 13b UStG include not only construction services but also works deliveries and other services from foreign-based companies
- The service recipient is liable for VAT if they are a business, regardless of other tax regulations they may fall under
Source: datenbank.nwb.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
