Telecommunications is an industry with great growth rates worldwide, especially in the area of mobile communications and the Internet. In the case of services in the field of telecommunications, problems of tax relevance arise, particularly in the field of sales tax. Until 1996, the place of performance and, accordingly, the country of taxation, the seat of the service provider was decisive.
With the value added taxAmendment Act 1997, the location of the customer was decisive (§ 3 a IV No. 12 UStG). Thus, by relocating the provider's registered office, only the Tax liability not be influenced. In the area of income taxes, the deferral of profits is problematic.
The international allocation of revenue shares is difficult due to satellite communication and extensive transmission facilities. For the companies themselves, the existence of a well-developed telecommunications infrastructure is particularly important for the information industry.