With effect from 1 January 2019, the regulation on determining the place of services in the field of telecommunications, radio and television services and other services (“Other Services”) provided electronically pursuant to sec 3a (5) of the German VAT Act (Umsatzsteuergesetz) will be amended.
The place of supply of the abovementioned Other Services provided by an entrepreneur established in only one Member State to non-entrepreneurs established in other EU Member States will then be the place determined by the general rule for B-2-C services. Pursuant to sec. 3a(1) of the German VAT Act this is the place from which the entrepreneur operates his business or the place of business from which the Other Service is provided if the total amount of the charges for the specified Other Services has not exceeded EUR 10,000 in the preceding calendar year and does not exceed EUR 10,000 in the current calendar year. The entrepreneur may waive the application of this turnover threshold with the consequence that the place of supply of the specified services is (still) the place where the recipient has his domicile, habitual residence or registered seat. Please keep in mind that the waiver binds the entrepreneur for at least two calendar years.
Further information can be found on the Circular of the German Tax Authorities (BMF-Schreiben), released on December 14th, 2018.