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 |
Contact us for more information.
Source: Bundesministerium der Finanzen (pdf in German)
