Authors: Andri Jürgensen, Rechtsanwalt, Kiel and Hartwin Räuchle, Steuerberater (The basics of VAT in Germany) and Sonja Laaser (all further texts)

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Value added tax on foreign transactions

When artists and creative professionals work internationally, they are faced with the question of which activities require them to pay value added tax in which country. Those who invite, commission and collaborate with artists (e.g., organisers, other artists, customers, clients) also often have to deal with questions concerning the payment of value added tax:

Does the reverse-charge procedure apply? Does it make a difference whether a work of art is delivered to a country inside or outside the EU? Does a small business owner (Kleinunternehmer) who hires a dancer from abroad have to pay value added tax? Under what conditions are performances by musicians from abroad exempt from value added tax? Does it make a difference whether an artist from Germany sells a painting to a private individual or a gallery abroad? When should a value added tax identification number (VAT ID) be indicated on the invoice?

These and other questions will be answered in the sections VAT on foreign transactions, Transactions to Germany and Transactions from Germany.

Information on the basics of value added tax in Germany can be found here.