For sales to businesses in third countries, the VAT treatment is generally straightforward. For private customers, things look different - while the basic rule is that the place of supply is in Germany, there are numerous exceptions, and the most important one is catalogue services under § 3a Abs. 4 UStG.
This article explains exactly what catalogue services are, how to identify them, and what this means for your invoicing and VAT obligations.
Note: This article provides general guidance. If you have specific questions or uncertainties, feel free to reach out to our tax coaches or contact a partner tax advisor.
For a full overview, see: International clients outside the EU.
The B2C basic rule: place of supply in Germany
When you as a self-employed person provide a service to a private individual, the basic rule from § 3a Abs. 1 UStG applies first: the place of supply is where you are based - i.e. in Germany.
This means: if you give a private individual in Mexico a live online language course where you teach interactively, your transaction is taxable in Germany. You issue your invoice in the normal way with 19% German VAT.
So far, so good - if it weren't for catalogue services, which overturn this basic rule for a whole range of important service types.
What are catalogue services?
Catalogue services are specific types of services listed in the law for which a different place of supply applies as soon as they are provided to private customers in third countries. In these cases, the place of supply shifts to the customer's place of residence - meaning the transaction is not taxable in Germany (§ 3a Abs. 4 UStG).
Important: the catalogue services rule only applies when your private customers are based in a third country. For private customers within the EU, the basic rule continues to apply - you still pay tax in Germany (with the exception of electronic services under § 3a Abs. 5 UStG).
The catalogue in detail
Under § 3a Abs. 4 UStG, the following services are treated as catalogue services, among others:
Copyrights, patents, licences, trademarks and similar rights: The granting, transfer or exercise of these rights. A classic example: you licence a photo, text or melody you have created to a private individual in the USA.
Consulting and similar services: This includes services provided by lawyers, tax advisors, auditors, engineers, experts, interpreters and translators - and more generally, services that by their nature correspond to one of these professions. General management consulting for a private individual also falls under this category.
Advertising and public relations: This includes, for example, advertising copy, campaign concepts, PR consulting or social media strategy.
Data processing and information: The automated processing of data and the supply of information of any kind.
Banking, financial and insurance transactions: Including reinsurance transactions (less relevant for most self-employed persons, but theoretically possible).
Supply of staff: The secondment of workers.
Rental of movable tangible property (with the exception of means of transport).
Telecommunications services, broadcasting and television services - though there are overlaps here with § 3a Abs. 5 UStG (see below).
Services supplied by electronic means - i.e. digital products. In practice, these are usually governed by § 3a Abs. 5 UStG, which provides the same shift in place of supply logic but applies uniformly for both the EU and third countries. More on this in our article Selling digital products to third countries: what you need to know.
Waiver of the exercise of certain rights and of professional activities - relevant, for example, in non-compete agreements.
The catalogue is exhaustive - anything not explicitly listed does not fall under § 3a Abs. 4 UStG and remains subject to the basic rule.
Practical examples: catalogue service or not?
Example 1 - catalogue service: You work as a freelance copywriter in Berlin and write advertising copy for a private individual in Australia for their personal wedding website. Advertising is a catalogue service → place of supply in Australia → your invoice is not taxable in Germany.
Example 2 - catalogue service: You are a translator and translate a personal letter for a private individual in Switzerland. Translation services fall under consulting-type services → place of supply in Switzerland → not taxable in Germany.
Example 3 - not a catalogue service: You are a personal trainer in Munich and provide a private individual from the USA with a live video call training plan including personal coaching. Sports training services are not a catalogue service → the basic rule applies → place of supply in Germany → invoice with 19% German VAT.
Example 4 - not a catalogue service: You are a photographer and take portrait photos for a private individual in Thailand during a private trip (the actual photography service, not the granting of rights). The pure act of taking photos is not a catalogue service → place of supply is generally in Germany - though specific rules on place of performance may apply here and should be checked on a case-by-case basis.
Example 5 - mixed case: You provide a private individual in Canada with legal advice by email (catalogue service) and additionally sell them an e-book (electronic service). Both services are taxable in the third country - the legal advice under § 3a Abs. 4, the e-book under § 3a Abs. 5 UStG.
The question of whether a service truly qualifies as a catalogue service is not always straightforward.
If in doubt, it's worth taking a closer look at the legislation or checking briefly with a tax professional.
What happens when the place of supply is in a third country?
If your service falls under § 3a Abs. 4 UStG and your private customer is based in a third country, your transaction is not taxable in Germany.
At first glance, that sounds straightforward - and in many cases it is.
However: the shift of the place of supply to a third country does not automatically mean that the transaction is tax-free there. It is possible that local VAT applies in the destination country and that you may even need to register there.
For catalogue services to private customers, registration obligations abroad are less common than for digital services. Many third countries have historically focused their registration rules on digital products and high-volume transactions, while traditional consulting services to individual private customers often remain below thresholds or are not captured at all.
That said: if you regularly provide services to a particular third country, check the local rules.
You'll find more details in our article VAT registration abroad: when do you need to register?.
Invoicing: what belongs on the invoice?
If your catalogue service is provided in a third country, the following applies to your invoice:
No German VAT - your transaction is not taxable in Germany.
A clear note on the place of supply, e.g. "Service not taxable in Germany - place of supply in third country".
Full recipient details (name, complete address in the third country).
A meaningful service description that makes clear why this is a catalogue service (e.g. "advertising copy for private website", "legal advice by email").
In the German VAT pre-submissions, these transactions are typically reported in line 36, field 45 (other non-taxable transactions - place of supply not in Germany).
Unlike for EU B2B transactions, no "Zusammenfassende Meldung" (recapitulative statement) is required for third-country transactions.
Proving that your customer is a private individual
One detail that is easily overlooked in practice: you need to be able to tell whether the other party is actually a private individual or possibly a business. Different rules apply to businesses in third countries (see B2B invoices to third countries: how to invoice correctly).
In practice, this is usually straightforward, as businesses will identify themselves accordingly.
But if someone orders using a private address and provides no business details, you are generally entitled to assume they are a private individual - as long as there are no indications to the contrary.
Distinction from § 3a Abs. 5 UStG (digital services)
The catalogue logic in Abs. 4 and the rules for electronic services in Abs. 5 UStG overlap in part - but not entirely. A useful rule of thumb:
§ 3a Abs. 4 UStG (catalogue services): Applies only to private customers in third countries. Within the EU, the basic rule continues to apply (place of supply in Germany).
§ 3a Abs. 5 UStG (electronic services): Applies to private customers worldwide - both EU and third countries. Within the EU, this is handled via the One-Stop-Shop (OSS); outside the EU, via local registrations.
Many digital products could theoretically also be catalogue services (e.g. an e-book as "supply of information"), but in practice § 3a Abs. 5 UStG usually takes precedence - and is the more relevant provision for digital products.
More on this in our article Selling digital products to third countries: what you need to know.
Your roadmap for B2C catalogue services to third countries
Check whether your service falls within the catalogue of § 3a Abs. 4 UStG. If in doubt, ask one time too many rather than one time too few.
Make sure you have confirmation that your customer in the third country is a private individual (billing address, absence of business details).
Issue your invoice without German VAT and add a note indicating the foreign place of supply.
Check whether a registration obligation exists in the destination country - depending on the country and type of service, this may be relevant.
Document everything clearly - the classification should be traceable if the tax office ever asks.
Report the transactions correctly in your VAT return (line 36).
Conclusion
The rules around catalogue services are one of the most common VAT pitfalls for self-employed persons working in consulting, creative and design fields.
While they may appear to add complexity at first glance, they often simplify invoicing in practice - because you invoice your third-country customers net and have nothing to remit in Germany.
The key is recognising when a service qualifies as a catalogue service and when it does not, and making sure the formalities are clearly reflected on the invoice.
If you're unsure - especially with mixed services, ongoing client relationships or high volumes - it's always worth a quick check with a tax professional.
If you have questions about your individual situation, our Tax Coaches and partner tax advisors from the Accountable network are happy to help.