Following the completion of the European Internal Market in 1993, import turnover tax is no longer levied within the European Union. The intra-Community supply of goods and services is now – depending on the type and scale of goods or services concerned – subject to the turnover tax rules in either the EU country of origin or the EU country of destination. Under Article 151 (1) 1 (a) of Council Directive 2006/112/EC on the common system of value added tax (VAT Directive), the EU member states exempt intra-Community supplies of goods and services under diplomatic and consular arrangements from turnover tax.

This exemption is however linked to the conditions applicable to tax relief on goods and services in the host member state and to bilateral agreements on reciprocity. The applicable German rules are to be found in the Regulation on the Reimbursement of Turnover Tax (Umsatzsteuererstattungsverordnung – UStErstV).

Information on the provisions of the Regulation on the Reimbursement of Turnover Tax and the procedure for the reimbursement of turnover tax paid on the intra-Community supply of goods and services can be found in the Circular Notes
:

• No. 14/2018 of 16 April 2018 and Annex (turnover tax)
• No. 01/2022 of 18 January 2022 and Annex (vehicles)