Module 121 min2505 wordsFree — no account
Where a service is taxable: the place of supply under § 3a UStG
The module’s worked examples, then cases to attempt before revealing their solution · 1 section · 245 words · 2 min
Practical case
Four consulting invoices, four places of supply
A self-employed management consultant based in Leipzig issues four invoices for consulting services in April 2026, each net: 4,800 euros to an agency in Lyon that has given its French identification number; 1,200 euros to a private individual in Vienna; 2,000 euros to a private individual living in Zurich; 1,500 euros to a bakery in Dresden. None of the services concerns property or an event, and exemptions are disregarded. Which services are taxable in Germany, and how much German VAT does he owe in total?
Hint: For each customer, first check whether it is a business, then whether it is in the Union or in a third country. The standard rate is 19 percent.
Show the solution
Lyon: the agency is a business receiving the advice for its business, so § 3a(2) UStG applies. The place is France; not taxable in Germany. Vienna: a private individual in a Member State; subsection 4 does not apply because Austria is not a third country. Subsection 1 applies and the place is Leipzig: 1,200 euros times 19 percent gives 228 euros. Zurich: a private individual in a third country; consulting falls under subsection 4 sentence 2 no. 3, so the place is Switzerland and it is not taxable in Germany. Dresden: a business in Germany, subsection 2, place Dresden: 1,500 euros times 19 percent gives 285 euros. Together 228 plus 285 euros.
Answer: only Vienna and Dresden are taxable in Germany; 513 euros of German VAT
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