Deloitte Tax-News: Print

URL: http://www.deloitte-tax-news.de/german-tax-legal-news/lower-court-rule-onplace-of-supply-of-electronically-provided-services-dating-agency.html
27.08.2014
Lower court rule on place of supply
of electronically provided services
(dating agency).
The operation of an online dating site is an electronically provided
service within the scope of the German VAT law.
The tax court of Köln issued a decision on 14 May 2014, concluding that the operation
of an online dating platform in Germany is an electronically provided service under
Germany’s VAT Act.
The case involved a US company that operated the online dating platform in Germany.
Members of the service paid a monthly membership fee for access to database
information on other members. The US company took the position that the place of
performance of the services was in the US rather than Germany because the US
company also provided other services, such as controlling new member profiles.
The tax court of Köln classified the supplies as electronically supplied services within
the meaning of para. 3a (4) nr. 14 of the German VAT Act since the main element of the
supply is the provision of pictures, text and information in a database. The provision of
the supply is thus automated and only requires minimal human intervention, whereas
the use of information technology is indispensable.
The case has been referred to the Federal Tax Court.
Companies providing any online services should monitor future developments relating
to electronically provided services, in particular, in light of the definition of the new
place of supply rules for such services.
Contacts
Irene Abele | München
Senior Manager
[email protected]
089 29036-8285
Dr. Eduard Forster | München
Partner
[email protected]
089 29036-8514
www.deloitte-tax-news.de
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