An entrepreneur becomes liable for VAT as a recipient of services if he himself purchases construction services from another entrepreneur. The prerequisite is that at least 10% of his total turnover is attributable to construction services. Proof by submitting an exemption certificate in accordance with Section 48b EStG only has an indicative effect and does not replace the need to submit a tax return. Certificate VAT 1TG. The supplier issues net invoices and refers to the change of tax liability in his invoice.
Become Construction services and/or building cleaning services is provided in Germany by an entrepreneur based in Germany, the recipient of the service is therefore liable for the VAT. This can be assumed if the responsible tax office has issued a valid certificate stating that the recipient is an entrepreneur providing such services. For this proof by the tax offices, the Sample VAT 1 TG form as proof of tax liability of the service recipient for construction and/or building cleaning services newly announced.
The decisive factor is that the recipient of the service is an entrepreneur who provides such construction or building cleaning services on a sustainable basis (Section 13b (5) sentences 2 and 5 in conjunction with (2) nos. 4 and 8 UStG). This can generally be assumed if the tax office responsible for his taxation has issued him with a corresponding certificate. It is important that this certificate is valid at the time the service is provided.