German construction withholding tax and exemption
A business or public-law body that pays for construction work in Germany must withhold 15 percent of the consideration including VAT, unless a de minimis threshold applies or the contractor presents an exemption certificate. The first module explains who must withhold and how the thresholds are added up. The second shows how the contractor obtains the certificate and how the client checks it. The third walks through filing, payment, liability, crediting and refund.
Intermediate3 modules60 minModule 1 free to read
2026 rules — verified on September 23, 2026
Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.
This content is part of the path: Construction services and construction withholding tax· Step 1 of 6· Next step: German place of supply, reverse charge, EU acquisitions
By the end of this course, you can…
These outcomes are the modules' own: the promise cannot say anything the course does not teach.
- check whether a client is obliged to withhold as a recipient of construction work, even if it charges no VAT itself
- identify construction work from the wording of the statute and recognise when merely invoicing makes someone the contractor
- calculate the 15 percent withholding on the consideration including VAT, not on the net fee
- apply the €5,000 and €15,000 de minimis thresholds on a forward-looking, aggregated basis
- confine the exception for landlords with no more than two flats to the work it actually covers
- as a contractor, apply for the exemption certificate at the competent tax office and know when it can be refused
- read the mandatory entries on a certificate and tell a general certificate from an order-specific one
- as a client, establish validity on the payment date and have it confirmed through the EIBE portal
- know the limits of the protection of reliance that releases the client from liability
- keep the certificate and the check result so that they are available at a later tax audit
- as a client, file the withholding electronically on time and pay it to the right tax office
- give the contractor a statement containing all four statutory items
- assess the liability for an omitted or insufficient withholding and the benefits of proper filing
- as a contractor, follow the crediting in its statutory order
- apply for a refund while observing its conditions and deadline
The programme, module by module
Each module has its own page. Durations are derived from the actual text, never announced by hand.
- Module 121 minFree — no accountWho must withhold: recipient, construction work, rate and de minimis thresholdsWhat you will be able to do
- check whether a client is obliged to withhold as a recipient of construction work, even if it charges no VAT itself
- identify construction work from the wording of the statute and recognise when merely invoicing makes someone the contractor
- calculate the 15 percent withholding on the consideration including VAT, not on the net fee
- apply the €5,000 and €15,000 de minimis thresholds on a forward-looking, aggregated basis
- confine the exception for landlords with no more than two flats to the work it actually covers
- Module 219 minIncluded in the full courseThe exemption certificate: applying, presenting and checkingWhat you will be able to do
- as a contractor, apply for the exemption certificate at the competent tax office and know when it can be refused
- read the mandatory entries on a certificate and tell a general certificate from an order-specific one
- as a client, establish validity on the payment date and have it confirmed through the EIBE portal
- know the limits of the protection of reliance that releases the client from liability
- keep the certificate and the check result so that they are available at a later tax audit
- Module 320 minIncluded in the full courseAfter the withholding: filing, liability, crediting and refundWhat you will be able to do
- as a client, file the withholding electronically on time and pay it to the right tax office
- give the contractor a statement containing all four statutory items
- assess the liability for an omitted or insufficient withholding and the benefits of proper filing
- as a contractor, follow the crediting in its statutory order
- apply for a refund while observing its conditions and deadline
What you take away
A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.
Participant handout (PDF)
PDF
- Learning objectives (3)
- Key figures (4)
- Mistakes to avoid (3)
- Official sources (3)
Exercise workbook (Word)
Word
- Learning objectives (3)
- Key figures (4)
- Mistakes to avoid (3)
- Official sources (3)
Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.
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Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.