Place of supply in case of damage settlement

Amendment of Section 3a.9 Umsatzsteuer-Anwendungserlass (UStAE) regarding the place of supply in case of damage settlement

• The German Federal Ministry of Finance is making changes to the Umsatzsteuer-Anwendungserlass (UStAE) regarding the location of other services in the context of damage settlement.
• The changes are in response to the European Court of Justice’s ruling in the Uniqa Asigurari case, which clarified the determination of the place of supply for certain services.
• Services provided by third-party companies on behalf of insurance companies for damage settlement are not considered consultancy services under the EU VAT Directive.
• The UStAE will be amended to reflect this clarification, specifically in section 3a.9.
• The amendment states that services requiring decision-making authority, such as the granting or denial of compensation in the case of damage settlement, are not considered pure consultancy services.
• The amendment also clarifies that services provided within the legal profession primarily involve representing and defending the interests of a client in a context of conflict and conflicting interests.

Source: bundesfinanzministerium.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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