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German tax point rules

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German tax point rules

The tax point is the time when VAT becomes due in a transaction. VAT due should be distinguished from VAT payable. VAT is due when the tax point occurs. VAT is payable between the day after the end of the reporting period and the due date to submit and pay the VAT return.

  • General rule: Tax point arises when the goods are put at the disposal of the customer or when the service is completed.
  • Prepayments: In case of prepayments of all or part of the agreed price, VAT is due at the end of the VAT return period in which the payment was received.
  • Continuous supplies of services: The tax point occurs when the service is completed or, if partial payments are made periodically (eg. Lease payments), these payments are considered separate supplies, hence VAT becomes due as per the general rule for each payment.
  • Intra-Community acquisitions: Tax point occurs at the end of the month in which the IC-acquisition happened. If an invoice is issued, the tax point is on the date of the invoice
  • Intra-Community supplies: The tax point occurs on the end of the month in which the IC-supply was made.
  • Import: Tax point arises when the goods are released for free EU circulation (customs cleared or outside the customs suspension regime). The payment of import VAT can be delayed up to 45 days (deferred import VAT).