In Germany, the reverse charge mechanism applies to certain supplies of goods and services where the VAT liability shifts from the supplier to the customer. Under the reverse charge mechanism, the recipient of the goods or services is responsible for reporting and paying the VAT due to the German tax authorities, rather than the supplier.

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The reverse charge mechanism applies to various types of transactions in Germany, including:

1. Intra-community acquisitions of goods: When a German VAT-registered business purchases goods from another EU country and imports them into Germany, the recipient is responsible for reporting and paying the VAT due on the transaction.

2. Services provided by non-established businesses: When a non-established business provides services to a German VAT-registered business, the recipient is responsible for reporting and paying the VAT due on the transaction.

3. Certain domestic transactions: The reverse charge mechanism may also apply to certain domestic transactions, such as the supply of goods subject to excise duty.

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When a supplier established outside of Germany offers services or sells goods with installation to a VAT-registered entity, the domestic reverse charge mechanism is applied. The VAT registration status of the supplier does not affect the application of this mechanism.