Self-supply of goods and services

In principle, the supply of goods and services that are provided against payment are subject to VAT. However, the supply of goods and services provided free of charge may also be subject to VAT as self-supply.

Withdrawal of goods

The withdrawal of goods that (or whose components) entitled to full or partial input tax deduction by the entrepreneur from the business is subject to VAT as self-supply in the following cases:

  • The withdrawal of goods for purposes external to the company or
  • The withdrawal of goods for the needs of their employees (staff) or
  • The withdrawal of goods for all other unpaid uses, with the exception of low-value gifts and samples for business purposes.

Self-supply with the use of goods

Use of goods forming part of the assets of a business, which are eligible for full or partial tax deduction, is liable for self-supply taxation, where use

  • is for purposes external to the company or
  • for staff needs, where these are not gifts.

Self-supply with other services

Free provision of other services is subject to self-supply taxation, where these services:

  • are carried out for purposes external to the company or
  • are carried out for the needs of their staff, where these are not gifts.

Example

An electrical retailer removes a television set from his warehouse and now uses it in his private household. A lecturer also uses his PC, for which he has claimed a full input tax deduction, for private purposes.

Legal basis

Sections 3 and 3a of the Umsatzsteuergesetz (UStG)

Translated by the European Commission, altered by the Federal Ministry of Finance
Last update: 1 January 2022

Responsible for the content: Federal Ministry of Finance

Rate this page and help us to improve.