Place of Supply for Services Between Head Office and Branch: BFH Judgment of December 4, 2025

• The location of a service subject to § 3a Abs. 2 UStG is not in Germany if the service, though ordered by a German liaison office of a company based in a third country, is used for the economic activity at the company’s main seat in the third country.
• The plaintiff’s appeal against the decision of the Berlin-Brandenburg Fiscal Court was dismissed as unfounded.
• The plaintiff, a company based outside the EU operating hotels and resorts, maintained a liaison office in Germany for marketing and sales activities, but the actual hotel services were provided from the main office abroad.
• The plaintiff’s claim for input VAT deduction was denied because no taxable transactions were carried out in Germany.
• The plaintiff must bear the costs of the appeal proceedings.

Source: bundesfinanzhof.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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