Traditionally, Germany did not require non-resident suppliers to register for VAT when supplying goods with installations to German VAT taxable persons, as the requirement to pay VAT was shifted to their customers. However, on 10 October 2020, Germany’s Federal Ministry of Finance (MOF) published a letter restricting the concept of “supply with installation” to only apply to situations where suppliers install goods they do not own. This new rule entered into force as from 1 January 2021. Consequently, non-resident suppliers providing supplies with installation that do not fall within the amended definition must now register for VAT in Germany, file German VAT returns, and charge German VAT to their customers. Suppliers should check whether these changes affect them.
Source Deloitte
