Article 14 vs Article 7 for intra-EU supply to a German VAT-registered recipient
Working on a Q4 VAT return for a Malta self-employed consultant invoicing a German AG. Client has the German VAT number, I've verified it on VIES.
The service is general consultancy (no electronically supplied services). My reading is Article 44 of the VAT Directive → reverse charge at the recipient → Box 15 on VAT return with Article 14 (intra-Community supply of services).
But I keep second-guessing myself because the Maltese guidance on Article 7 vs Article 14 is sparse. Anyone willing to sanity check?
3 replies
Your reading is correct. Article 44 general rule, place of supply is where the recipient is established, reverse charge applies. Box 15 on the VAT return, customer fills in their UStVA Line 40/41.
Article 7 of the Maltese VAT Act is the domestic counterpart to Article 44 — same treatment. Article 14 is intra-Community goods, not services. For services use Article 7(1) and report as "services subject to reverse charge" on the VAT return.
Make sure your invoice references "Reverse charge — VAT to be accounted for by the recipient under Article 196 of Council Directive 2006/112/EC". German auditors expect that exact phrasing.
just to add: if the German client ever queries why you're not charging Maltese VAT, point them to their own §13b UStG — it's the German implementation of Article 196 and makes the reverse charge explicit on their side.
that's the sanity check i needed, thanks. you're right — i was conflating Article 14 (goods) with services. correcting the working paper now.
the invoice already has the Article 196 reference so at least that part was clean.
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