Since 1 January 2020, it is necessary to distinguish:

  • supplies with installation, where the goods are incorporated into the taxable purchaser’s premises in Germany (Werklieferung), which benefit from the reverse charge mechanism provided for in Article 194 of Directive 2006/112/EC when they are carried out by foreign sellers and which must therefore be invoiced without VAT ;
  • supplies with installation, where the goods are NOT incorporated into the taxable purchaser’s immovable property in Germany (Montagelieferungen), which cannot benefit from the reverse charge mechanism provided for in Article 194 of Directive 2006/112/EC anymore and which must therefore be invoiced with German VAT,
  Definition Reverse charge mecanism
Art 194		 DE VAT invoice DE VAT registration mandatory Mention on invoice
Werklieferung  Supplies with installation, where the goods are incorporated into the taxable purchaser’s premises in Germany YES NO NO “Steuerschuldnerschaft des Leistungsempfängers”
Montagelieferungen Supplies with installation, where the goods are NOT incorporated into the taxable purchaser’s immovable property in Germany NO YES YES N/A

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Source: Bundesministerium der Finanzen (pdf in German)