Direct transactions/direct investments

For investors who, for instance, only intend to sell their prod-
ucts in Germany and thus develop a new market, the direct
transaction option seems to offer some advantages, especially
when considering that such projects are usually not free from
risks and often lead to success only after a startup phase.

Direct transactions are the easiest option when it comes to
conducting business in Germany. In direct transactions in the
classical meaning, the foreign business supplies goods or
renders services to a domestic recipient without giving rise
to taxation in Germany (e. G. A foreign business supplies mer-
chandise from abroad to a German customer). In such a case,
the German-source income is not subject to income taxation
in Germany. Nevertheless, the impact of Value Added Tax Law
and Customs Law has to be considered.