VAT Special: VAT in the Energy Sector

Fundamentals of Sales Tax in the Energy Industry

• • Supply of electricity, gas, and heat.
  • Distinction Between Delivery and Other Services, and Determination of Location.
  • Tax liability and applicable tax rate.
  • Contractual relationships with subcontractors, primarily for installation and maintenance work.
  • Special VAT Provisions Applicable to Transactions Between Network Operators and Plant Operators.

Tax Liability and the Reverse-Charge Mechanism, in particular

• • § 13b(1) of the German Value-Added Tax Act (UStG): Procurement of Services from EU Subcontractors.
  • § 13b(2)(1) of the German Value-Added Tax Act (UStG): Work and services provided by foreign companies.
  • § 13b(2)(4) of the German Value-Added Tax Act (UStG): Construction services related to energy infrastructure.
  • § 13b(2)(5) of the German Value-Added Tax Act (UStG): Supply of electricity and gas between resellers.
  • § 13b(2)(6) of the German Value-Added Tax Act (UStG): Trading in certificates.

Billing and Documentation

• • Billing information for the service provider and the service recipient.
  • Invoice Correction and Input Tax Deduction.
  • Certificates: VAT 1 TH, VAT 1 TG, VAT 1 TS.

Current developments and case law

• • Current BMF letters.
  • Current case law.