Selling consulting, design, or development services to clients outside Germany follows different rules depending on whether your client is inside or outside the EU, and business or consumer.
Last updated: June 2026
For most "general rule" services (consulting, IT, design, marketing, and similar professional services), the place of supply is normally where your customer is based for B2B sales, and where you (the supplier) are based for B2C sales — this single distinction drives most of what follows.
Sales to VAT-registered EU businesses are typically outside German VAT scope, with the customer self-assessing VAT under the reverse charge. See our dedicated reverse charge guide for the mechanics.
This is where it differs from B2B. For general-rule services sold to a consumer in another EU country, the place of supply usually remains with you as the supplier, meaning German VAT rules generally continue to apply — you charge German VAT once registered, the same as if the customer were German-based.
Sales of general-rule services to clients (business or consumer) genuinely outside the EU are often outside German VAT scope entirely, since the place of supply shifts to the customer’s location under the "effective use and enjoyment" principles that apply more broadly to non-EU sales.
You need to establish they’re a genuine VAT-registered business, typically evidenced by a VAT-ID verified via the EU’s VIES system.
You can generally still treat genuine non-EU business customers as outside German VAT scope using other evidence of business status, since VIES verification only applies to EU businesses.
Yes, reverse-charge and outside-scope sales still count as part of your turnover for threshold purposes, even though no German VAT is charged on them.
No, goods follow entirely different place-of-supply and import/export VAT rules — this discussion is specific to services.
Some service types (property-related, admission to events, and others) have their own specific place-of-supply rules — worth a one-off consultation with a Steuerberater if you provide a mix of services.
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