In Germany, the VAT reverse charge mechanism applies to work supplies by a non-established taxable person to another taxable person, even if that operation actually qualifies as a supply of goods from a German VAT perspective. There is however a distinction to be made between such work supplies (“Werklieferungen”) and assembly deliveries (“Montagelieferungen”), although both operations include an installation and are therefore deemed to take place in Germany from a VAT perspective.
On 1 October 2020, the German Authorities issued clarifications in that respect, implying clearer definitions of these concepts.
Source: vatdesk.eu
