VAT Treatment of Transactions in the German Construction Sector

Construction is a complex process involving many parties with different responsibilities. Although the supplies made by all parties are closely related, the VAT treatment of all individual transactions must be assessed separately. Cross-border construction activities become even more complicated and may also give rise to fixed establishments. In this article, the author discusses the VAT aspects of construction projects under German VAT law, and gives a number of examples reflecting the VAT issues that may arise for building contractors.