Special VAT: VAT on construction services

Brief overview of sales tax

• Invoicing (Section 14 of the German Value Added Tax Act (UStG), electronic invoices).

Land, buildings, operating facilities

• Assessment by the tax authorities and the Federal Fiscal Court.
• Distinction between domestic/foreign/third country/other Community territory.

Definition of construction work

• Work deliveries, work services, partial services.
• Required certificates.
• Services provided by property developers.

Case law on construction work

• Accurate sales tax handling of construction services.
• When does a contractor provide sustainable construction services?
• In which cases should the simplification rule be applied?
• Property developers are not liable for tax within the meaning of Section 13b (5) sentence 2 of the German Value Added Tax Act (UStG).
• Construction services for the non-commercial sector of a building contractor.
• Significance of the UST 1 TG certificate and Section 48b of the Income Tax Act (EstG).

Tax liability for construction services (reverse charge)

• Construction services (B2B) provided by German contractors to German service recipients.
• Construction services (B2B) provided by foreign contractors to German service recipients.
• Tax liability for small businesses.

Basics of tax deduction for construction services (Section 48 et seq. EStG)

• Procedure, responsibilities, liability.

Issuing invoices and input tax deduction

• Input tax deduction from input services in relation to Section 13b of the German Value Added Tax Act (UStG).
• Consequences of incorrect tax reporting (Section 14c UStG).

Special features

• Services for public-sector customers in accordance with Section 2b of the Austrian Value Added Tax Act (UStG).

Letting of real estate

• Option pursuant to Section 9 of the German Value Added Tax Act (UStG).
• Design of electronic invoices for rentals.