Globalization is increasingly leading to the fact that services beyond the German borders are also provided abroad. This inevitably raises the question of tax and tax law peculiarities, especially in connection with the value added tax shown on the invoice for the services provided by a client based abroad.
So what about VAT on invoices abroad?
What does the law say
In the correct VAT treatment in an invoice for services provided abroad, two factors play a key role in the amount of VAT. The decisive factor for the value added tax shown in the invoice is the country in which the service provided is recorded for sales tax purposes and the way in which you have to show the value added tax in the invoice. Until the end of 2009, the legal situation with regard to VAT for clients domiciled abroad was very complex and characterized by exceptional regulations. … Read More