The German Federal Ministry of Finance (BMF) has issued a new version of form USt 1 TG, which serves to document reverse charge liability for recipients of construction and building cleaning services, replacing the previous form from December 2024.
The form USt 1 TG provides standardized documentation for establishing the service recipient's tax liability under Germany's reverse charge mechanism for construction and building cleaning services. This mechanism shifts the VAT obligation from the service provider to the recipient in these specific sectors.
The update reflects ongoing administrative refinements to Germany's domestic reverse charge procedures for construction and cleaning services, which are designed to combat VAT fraud in these sectors while ensuring proper documentation of tax liabilities.
