Who owes the VAT when my Bulgarian company invoices a German client?

The German client, provided he is a business. For a service supplied to a business the place of supply is where the recipient runs his business, section 3a(2) sentence 1 of the German VAT Act. The recipient then owes the tax himself, section 13b(1) together with (5) sentence 1. Your invoice therefore shows no VAT, names both VAT identification numbers and carries the note that the recipient is liable for the tax. The client declares the tax and deducts it as input tax in the same step, to the extent he is entitled to. Construction services and transactions involving land follow separate rules.