Delivery of Goods in Germany with Installation or Assembly
Many goods will be delivered as separate parts to the client and the installation or assembly will be performed at the clients premises e.g. in Germany.
The two most important facts are the deliveries of e.g. machines, which have to be assembled to the ground or if goods were delivered and installed in Germany. The allocation as delivery or service is important for the VAT determination.
When delivering e.g. a machine which has to be assembled in the normal case it would still be delivery as the service of assembling is only an ancillary service for the customer. In comparison the construction and building of a new house is usually determined as service under the reverse charge system. When selling goods with installation or assembly every case has to be reviewed separately according to German VAT rules.
Summary of the most important details
- Assembly or installation of goods can be determined as delivery or service.
- As example: Building of a new house is usually determined as service.
- As example: The installation of a new machine is usually determined as delivery.
