Section 1: Subject matter and scope

§ 3c Place of supply for distance sales

(1) The place of supply for intra-Community distance sales shall be regarded as the place where the goods are located at the point in time where the transportation or the dispatch to the customer ends. An intra-Community distance sales of goods means supplies of goods transported or dispatched by or on behalf of the supplier from the territory of a Member State to the territory of another Member State or from other Community territory into the territory, as mentioned in § 1 paragraph 3, to the customer including where the supplier intervenes indirectly in the transportation or dispatch of the goods. A Customer, within the meaning of sentence 2, is the recipient as mentioned in § 3a paragraph 5 sentence 1 or a person as mentioned in § 1a paragraph 3 number 1 who neither exceeds the decisive purchase threshold nor waives its application; in the case where the transportation or dispatch ends in the territory of another Member State, the purchase threshold of this Member State shall be decisive.

(2) The place of supply for distance sales of goods, which are imported from a third country territory to a Member State other than the Member State where the transportation or the dispatch to the customer ends, shall be regarded to be the place where the goods are located at the point in time where the transportation or the dispatch to the customer ends. § 3 paragraph 3a sentences 4 and 5 shall apply accordingly.

(3) For distance sales of goods, which are imported from a third country territory to a Member State where the transportation or the dispatch to the customer ends, this Member State shall be regarded as the place of supply if the tax for these goods shall be declared in accordance with the special taxation procedure mentioned in § 18k. § 3 paragraph 3a sentences 4 and 5 shall apply accordingly. In the case of distance sales within the meaning of § 3 paragraph 3a sentence 2, sentence 1 shall apply accordingly for supplies of goods to which the transportation or dispatch is allocated in accordance with § 3 paragraph 6b, also in cases where the tax for these goods is not declared in accordance with the special taxation procedure mentioned in § 18k and a taxable person or an agent engaged by him is the person liable for the import VAT the importation of the goods.

(4) Paragraph 1 shall not apply if the supplier has his seat, management, fixed establishment or, in the absence of a seat, management, fixed establishment, his permanent address or usual place of residence only in one Member State and the total value of the supply of services mentioned in § 3a paragraph 5 sentence 2 to recipients mentioned in § 3a paragraph 5 sentence 1, with their permanent address or usual place of residence in another Member State and as well as the total value of the intra-Community distance sales as mentioned in paragraph 1 sentences 2 and 3 has not exceed Euro 10,000 in the previous calendar year and does not esceed this threshold in the current calendar year. The supplier can declare vis-á-vis the tax office that he waives the application of sentence 1. The supplier shall be bound by this waiver for at least two calendar years.

(5) Paragraphs 1 and 3 shall not apply for

1. the supply of new vehicles

2. the supply of an item which is assembled or installed by the supplier or on his behalf regardless of whether it has been put into operation for test purposes or not

3. the supply of goods where the margin scheme mentioned in § 25a paragraph 1 and 2 is applicable.

In the case of goods subject to excise duty, paragraphs 1 and 3 shall not apply for supplies to a person mentioned in § 1a paragraph 3 number 1.