Tax debtor
As a rule, the entrepreneur providing the goods or services is the party who owes the value-added tax.
In some cases however, the tax debt passes to the customer or purchaser. This is the case for instance if an entrepreneur who is not resident in Germany provides services in Germany for a German business. The same applies for a so-called "Werklieferung" (provision of labour and materials), which involves the processing of an item that uses materials procured by the (in this case: foreign) entrepreneur providing the services.
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