What is the reverse-charge mechanism?

Under the reverse-charge mechanism (recipient liable for VAT, §13b UStG or §19 öUStG) it is not the supplier but the recipient who owes the VAT. The supplier issues a net invoice without VAT and notes the mechanism. Typical cases are cross-border B2B services within the EU and certain domestic services such as construction work.

What note must appear on a reverse-charge invoice?

The note "Steuerschuldnerschaft des Leistungsempfängers" is mandatory. For cross-border services, the English term "Reverse charge" is often added as well. Without this note the invoice is formally defective.

Do I need the recipient’s VAT ID?

For cross-border B2B services within the EU, yes: the VAT IDs of both the supplier and the recipient must appear on the invoice. Verify the customer’s VAT ID before invoicing (e.g. via the EU VIES system).

Is VAT shown under reverse charge?

No. The invoice contains only the net amount, no VAT. The recipient calculates and reports the tax in their own country. As the supplier, show no VAT.

Guide · Reverse charge

How to write a reverse-charge invoice (§13b UStG)

Under the reverse-charge mechanism, the recipient owes the VAT, not you as the supplying business. This applies mainly to cross-border B2B services in the EU and certain domestic cases. On the invoice you show no VAT, state both VAT IDs, and add the required note "Steuerschuldnerschaft des Leistungsempfängers" (reverse charge).

When does reverse charge apply?

Most commonly for services to businesses in another EU member state (B2B): the tax liability shifts to the recipient’s location (Art. 196 of the EU VAT Directive). There are also domestic cases — which ones, and under which section, depends on the country.

Rules for your country:

Legal basis & domestic cases

In Germany, reverse charge is governed by §13b UStG. Typical domestic cases: construction services to other construction firms, building cleaning, supply of scrap and waste metal, and mobile phones/tablets/game consoles from €5,000 invoice value. The recipient owes and reports the VAT.

Mandatory fields of a reverse-charge invoice

Full name and address of the supplier and the recipient
The VAT ID of BOTH the supplier and the recipient
Issue date and a sequential invoice number
Type and scope of the service, and the date of supply
The net amount — with no VAT shown
The required note "Steuerschuldnerschaft des Leistungsempfängers" (i.e. "Reverse charge")

The required note

The note "Steuerschuldnerschaft des Leistungsempfängers" is mandatory. For international invoices it is customary to add "Reverse charge" as well. If the note is missing, the invoice is formally incomplete — and the recipient may query it.

Note: This guide provides general information and is not a substitute for tax or legal advice. Whether reverse charge applies depends on the specific case; when in doubt, consult your tax adviser.