Double taxation agreement Germany-Greece – KPAG

Taxes and duties on cross‑border business‑to‑business (B2B) services

1. Principle

Legal framework until 31 December 2009: Cross‑border services were subject to VAT in the country where the service provider was established. Taxability of services was generally determined by he seat of the service provider, while exceptions applied for:

Real‑estate services (taxable at the location of the property)
Cultural, artistic, scientific, sporting, entertainment, educational and similar services, including the organiser (taxable at the place of activity)
Work on movable tangible property (taxable at the place of activity, with the possibility of “shifting” via use of a VAT ID)
Transport services (taxable at the place of carrying out the transport, with special rules for intra‑EU transport)
So‑called “catalogue services” (taxable at the place of establishment of the service recipient)

Legal framework since 1 January 2010: the place of taxation for cross-border services is no longer determined by the seat of the service provider, but rather by the location of the service recipient—either their business establishment or, where applicable, a fixed establishment receiving the service. Catalogue services that were previously treated as exceptions, have become the general rule, and are now taxable at the place where the recipient conducts their business activity.

Exceptions that continue to apply:

Real‑estate services (location of the property)
Cultural, artistic, scientific, sporting, entertainment, educational and similar services, and the organiser (place of activity)
Passenger transport (assessed by distance performed)
Restaurant and catering services (place where they are provided)
Short‑term rental of means of transport, up to 30 days (90 days for watercraft) (place where the vehicle is made available)

For all services provided within the EU that fall under the general rule, the reverse‑charge mechanism is mandatory. Recapitulative statements must be filed for these services (previously only for intra‑Community supplies of goods).

2. “Catalogue services” (until 31 December 2009)

Granting, transfer and exercise of patents, copyrights, trademarks and similar rights, and waiver of rights
Advertising and public‑relations services (advertising agents, agencies)
Legal, economic, scientific, technical and similar consultancy services
Data‑processing services
Provision of information, including commercial processes and know‑how, including providing software electronically
Granting and administration of credit
Supply of personnel
Agreement to refrain, in whole or in part, from a commercial or professional activity
Rental and leasing of movable tangible property (excluding means of transport)
Telecommunications services
Radio and television broadcasting services
Other electronically supplied services, including the electronic provision of software
Granting access to natural gas and electricity networks and transmission; transmission or distribution via these networks and directly related services

2.1 VAT treatment abroad

European Union: Reverse charge applies when purchasing catalogue services; no foreign VAT shown and no foreign VAT registration required by the provider.
Third countries: The recipient is treated as the tax debtor for catalogue services provided by foreign providers. The provider’s turnover is not recorded if the recipient is not a taxable person or no comparable tax system exists.

2.2 Invoicing

A business established in Germany invoices foreign clients without German VAT, applying the invoicing rules of the recipient’s country if required.
The invoice must state “Tax liability of the service recipient” (reverse charge) and show the VAT ID numbers.

2.3 Advance VAT return

German return entry: “Non‑taxable supplies (place of supply not in Germany)” (line 42 under the former form). From 1 January 2010: no change; continue to note reverse charge and VAT IDs on invoices.

3. Services relating to immovable property located abroad

Legal framework until 31 December 2009: VAT registration at the location where the property is situated (including rental services, preparation of construction plans, brokerage, trade‑fair services).

3.1 Invoicing

Real-estate services related to foreign property were invoiced without German VAT; instead, the VAT of the country where the property is located applied. This rule also covered services provided to domestic entrepreneurs involving foreign property.
Requirement: tax registration abroad or appointment of a fiscal representative; otherwise no entitlement to input‑tax deduction.

3.2 Advance VAT return

Legal situation since 1 January 2010: no changes with regard to real‑estate services (still taxable at the location of the property).

4. Organisation and implementation of congresses and seminars abroad

Legal framework until 31 December 2009: Services (e.g., seminars, congresses) provided abroad were taxable at the place of activity.

4.1 Invoicing

Seminar services provided abroad were invoiced without German VAT, but subject to VAT in the host country. This also applied where the client was a domestic entrepreneur but the service was provided abroad.
Requirement: tax registration abroad or appointment of a fiscal representative; otherwise no entitlement to input‑tax deduction.

4.2 Advance VAT return

Legal framework since 1 January 2010: no changes regarding event services. Change effective 1 January 2011: Taxation of certain admission-related services shifted to the place of residence of the service recipient, in accordance with the EU rules in force at that time.

5. Work on movable objects / on‑site repairs at the customer

Legal framework until 31 December 2009: VAT on the processing and work performed on movable tangible property at the place where the activity is carried out.

5.1 Invoicing (until 31 December 2009)

Taxability at the place of activity; no German VAT imposed on services performed abroad; foreign VAT of the country of performance applied. Prerequisite: tax registration abroad or fiscal representative; otherwise no input‑tax deduction.

5.2 Advance VAT return

Legal situation effective 1 January 2010: The place of supply for services is the location of the service recipient’s establishment. On-site repair services are taxable at the client’s location. If the client is established outside the country, the VAT liability arises in that foreign jurisdiction. Within the EU, the reverse charge mechanism applies
Independent services related to cross‑border movements of goods

Types of services related to the movement of goods include services provided by commercial agents (arranging a delivery), freight forwarders (carrying out transport) and contract processors (working on movable tangible objects).

Legal situation until 31 December 2009: For movements of goods between two EU Member States, the place of supply was the customer’s country of registration if the customer used its VAT ID. These services were invoiced without German VAT, and the service recipient (invoice recipient) owed the VAT (reverse charge).

6.1 Invoicing (from 1 January 2010)

For services related to movements of goods, invoices must additionally show: the supplier’s VAT ID (if not otherwise stated) and the recipient’s VAT ID in another EU country, together with a reference to reversal of tax liability (reverse charge).

6.2 Advance VAT return

Services related to movements of goods in connection with exports to third countries can be exempt under special rules. From 1 January 2010 there are no separate exceptions for these services: the basic rule applies (place of supply = recipient’s seat), and within the EU reverse charge is mandatory.

7. Additional exceptions from 2010

Restaurant and catering services: taxable where they are provided.
Short‑term rental of means of transport: taxable where the means of transport is actually made available for up to 30 days (90 days for watercraft). For longer periods, taxability follows the recipient’s seat.
Passenger transport: assessed according to the distance performed.

8. Formalities related to the new basic rule from 2010 / Date of application

8.1 Proof of entrepreneurial status

EU recipients: Verify the counterparty’s entrepreneur status by checking the VAT ID with the Federal Central Tax Office (as for intra‑EU supplies). Use of the VAT ID should be established at contract conclusion.
Third‑country recipients: Provide an entrepreneur certificate (as in refund procedures), unless the service is a catalogue service—then this proof is not needed due to equal treatment of supplies to private individuals.

8.2 Recapitulative statement (EC Sales List)

Previously required for intra‑EU supplies of goods; from 1 January 2010 also required for services taxable in other EU countries under the basic rule. Monthly reports for supplies of goods; quarterly reports for services (due by the 25th of the following month).

8.3 Advance VAT return

Services that must be reported in the recapitulative statement must also be reported in the advance VAT return (line 41 of the revised form).

8.4 Invoice details

EU law standardises invoice details for cross‑border B2B services taxable in other EU countries: the supplier’s VAT ID (if not already generally indicated), the recipient’s VAT ID, and a reference to the reverse charge (e.g., “tax liability of the service recipient”).

8.5 Time of application

The time of performance of the service is decisive; the invoice date is not relevant. For continuous services, the end of the service period determines the time of supply.