The place of supply determines whether a transaction is subject to German VAT.
Here are some general rules for determining the place of supply of goods for VAT purposes within Germany:
- The place where the shipping of the goods begins
- The place where the goods are located at the time that the buyer acquires the power to dispose of the goods
- In case of movements from a special customs warehouse into free circulation within the EU: the location of the goods when they are put into free circulation counts as the place of supply of goods for VAT purposes.
- Imports into EU territory from non-EU countries: The place of the chargeable event for the supply of goods is the location where the imports enter the EU country of destination and the import VAT is levied.