056. VAT ID Number and Intra-Community Deliveries

KPMG Germany Webpage
Click on the above link to visit the KPMG Germany webpage on the Mondaq website
For disclaimer and copyright see end of this article.

Intra-community deliveries are exempt from VAT under sec. 4 no. 1 (b) UStG. The legal definition of an intra-community delivery requires among other things that the transaction constitute an intra-community acquisition and hence be subject to VAT for the recipient in another EU Member State (sec. 6a par. 1 no. 3 UStG).

A public letter recently issued by the Federal Ministry of Finance dated 29 March 1996 clarifies the supplier's responsibility to prove that the above requirement has been met: "The requirement ... is fulfilled when the acquirer of the goods has provided the entrepreneur with a VAT ID number issued to him by another Member State. The recipient thereby signifies his intention to acquire the goods tax free [in Germany] because the acquisition is subject to the taxation provisions of the other Member State.... The