Reverse charge / § 13b UStG

Reverse charge invoice in Germany: client in the EU, outside the EU, and construction

If you sell a service to a business client in another EU country, you charge no German VAT and the invoice must say „Steuerschuldnerschaft des Leistungsempfängers“ (the customer owes the tax) with both VAT IDs. A business client outside the EU, such as a US company, also pays no German VAT on most services, but that is outside the German VAT scope and not an EU reverse charge case. In German construction, § 13b UStG moves the VAT to the customer only if the customer itself regularly does construction work.

Last reviewed: 2026-11-02

Case 1: business client in another EU country

A service to a business is taxed where the client runs its business (§ 3a Abs. 2 UStG). The client declares the VAT in its own country. Most consulting, design, software and marketing work falls here. Work on a building, for example, follows other rules (§ 3a Abs. 3 UStG).

Get the client's VAT ID before you invoice, and check that it is valid. Keep the result.
Issue the invoice by the 15th of the month after the work (§ 14a Abs. 1 UStG). This is much shorter than the usual six months.
Show your VAT ID and your client's VAT ID. Your Steuernummer alone is not enough here.
Show the net amount, no VAT, and the words „Steuerschuldnerschaft des Leistungsempfängers“. You can add „Reverse Charge“ next to it for your client. Keep the German words.
Report the amount in your VAT advance return in Kennzahl 21 (line for non-taxable services under § 18b UStG).
Report the client's VAT ID and the amount in the EC Sales List (Zusammenfassende Meldung). See the deadlines below.

Worked case: in November 2026 you do €2,000 of consulting for a Dutch BV. Your invoice is due by 15 December 2026. It shows €2,000.00, no VAT, both VAT IDs and the wording above. In your return, €2,000 goes to Kennzahl 21. In your EC Sales List for the fourth quarter, due 25 January 2027, the BV's VAT ID appears with €2,000.

Goods work differently. Goods you ship to a business in another EU country are a tax-free intra-EU supply (innergemeinschaftliche Lieferung) if the client uses a valid VAT ID from another member state. The invoice needs both VAT IDs and a note that the supply is tax-free, also by the 15th of the next month. The exemption is lost if you do not file the EC Sales List correctly for that supply (§ 4 Nr. 1 Buchst. b UStG). The return line is Kennzahl 41.

Case 2: client outside the EU, such as a US company

For a business client outside the EU, a service under § 3a Abs. 2 UStG is also taxed abroad. You charge no German VAT. There is no EC Sales List entry, because the list covers EU clients only.

Keep proof that your client is a business, such as a contract and a registration record. The rule depends on this.
§ 14a UStG does not prescribe wording for this case. A clear note works, for example „Nicht steuerbarer Umsatz – Leistungsort im Ausland.“ (not taxable, place of supply abroad), which is also the note our software prints.
Do not use „Steuerschuldnerschaft des Leistungsempfängers“ automatically. Local rules in your client's country decide what happens there.
Report the amount in your VAT advance return in Kennzahl 45 (other non-taxable turnover, place of supply not in Germany).
Goods to a non-EU client are an export (Ausfuhrlieferung, § 6 UStG): tax-free if the goods really leave the EU, with proof of export. The line is Kennzahl 43.

Private clients are the exception, in both cases. For a private person the normal rule is German VAT (§ 3a Abs. 1 UStG). But for a private person living outside the EU, listed services such as advertising, legal and engineering work, translation, data processing and providing information are taxed where they live (§ 3a Abs. 4 UStG). Digital services to private persons in other EU countries have their own rules (§ 3a Abs. 5 UStG) and can run through the One Stop Shop. If you sell to many private clients abroad, ask a tax adviser (Steuerberater) to set this up once.

Case 3: German construction work under § 13b UStG

Here both sides are in Germany. Under § 13b Abs. 2 Nr. 4 and Abs. 5 UStG, the customer owes the VAT on construction work only if the customer itself regularly does this kind of work. A landlord or a software company ordering a new bathroom does not.

Ask for proof. The customer's tax office issues a certificate on form USt 1 TG, valid for up to three years. If your customer has one that is valid on the date of the work, the law treats the customer as such a business.
If reverse charge applies, your invoice shows no VAT amount (§ 14a Abs. 5 UStG) and must contain „Steuerschuldnerschaft des Leistungsempfängers“.
Report the amount in Kennzahl 60. Your customer declares and usually deducts the VAT.
Planning and supervision work is not covered. Building cleaning has a similar rule (§ 13b Abs. 2 Nr. 8 UStG).
If you and your customer are both in Germany, the E-Rechnung rules also apply to this invoice. The dates are in our E-Rechnung guide.

If you are unsure whether a job counts as construction work and both sides treated it as reverse charge in good faith, § 13b Abs. 5 UStG protects that treatment as long as no tax is lost. A written confirmation from your customer helps. For larger projects, ask a tax adviser before the first part payment.

When you are the customer: invoices from abroad

The same rule works in reverse. If a company in Ireland or the US bills your German business for a service, you normally owe German VAT on it (§ 13b UStG). You declare it in your return (Kennzahl 46 and 47 for EU suppliers, Kennzahl 84 and 85 for others), and you deduct it as input VAT in Kennzahl 67 if you have the right to deduct.

This also applies to a Kleinunternehmer. § 13b Abs. 5 UStG makes any business the debtor, even one whose own supplies are exempt under § 19 UStG, so you must file a VAT advance return for that period under § 18 Abs. 4a UStG and pay the VAT, even though you normally file none and cannot deduct input VAT. Online advertising or software bought from abroad is a common way this happens.

Zusammenfassende Meldung (EC Sales List): deadlines

You file this with the Bundeszentralamt für Steuern (Federal Central Tax Office), not with your local tax office. It is due on the 25th day after the period ends. If that day falls on a weekend or public holiday, the next working day counts (§ 108 Abs. 3 AO).

Services only: quarterly. Fourth quarter 2026: 25 January 2027. First quarter 2027: 26 April 2027. Second quarter 2027: 26 July 2027. Third quarter 2027: 25 October 2027.
Goods: monthly, unless your intra-EU goods stayed at €50,000 or less in the current quarter and in each of the four quarters before it. Then quarterly is allowed. If you pass €50,000 during a quarter, you must file by the 25th after that month, for that month and the earlier months of the quarter.
Which period: for services, the period in which you did the work. For goods, the period in which you issued the invoice, but no later than the period containing the month after the delivery.
Filing errors: correct them within one month of finding them (§ 18a Abs. 10 UStG).
The permanent filing extension (Dauerfristverlängerung) moves the VAT advance return only. It does not move the EC Sales List.
If you do nothing: a fine of up to €5,000 is possible for late or wrong lists if done with intent or recklessly (§ 26a UStG). For goods, you can also lose the tax exemption, so 19% can become your cost.
A Kleinunternehmer files no EC Sales List (§ 18a Abs. 4 UStG), and the VAT ID rule on invoices in § 14a does not apply (§ 19 Abs. 1 UStG).

Foreign currency basics

You may invoice in US dollars or pounds. VAT figures, the return and the EC Sales List are in euro.
For the VAT return, convert with the monthly average rates published by the Federal Ministry of Finance (BMF) for the month of the work (§ 16 Abs. 6 UStG). If you are on the cash basis (§ 20 UStG), use the rate for the month you received the money.
You can ask your tax office to allow a daily rate instead, with proof from your bank.
Worked case with a sample rate, not a real one: you bill a US company $3,000 for November 2026. If the BMF rate for that month were $1.10 per euro, Kennzahl 45 would show €2,727, rounded as the form requires.

What our software does here, and where it stops

These steps sit inside the bookkeeping, EÜR and tax modules, with English screens. Filings stay in German.

Tax keys for each case: EU service, intra-EU goods, export, non-EU service and § 13b as supplier. Each key sends the amount to the right line of the return.
On the invoice: the EU service key and the § 13b key print the wording „Steuerschuldnerschaft des Leistungsempfängers.“ The e-invoice check reports it as an error if the customer's VAT ID is missing.
VAT ID check against the EU's VIES service, with a saved record of the result.
EC Sales List: a draft comes from your bookings for you to review, and then it is filed directly from the software with your ELSTER certificate. Filing is included in an active bookkeeping or EÜR subscription; otherwise it is €20 per filing and period. Preparation is free.
Incoming reverse charge invoices are not booked silently. The software flags them for your review.
What it does not do: it does not decide if your client is a business, or if a job is construction work. It does not produce the annual EC Sales List variant in § 18a Abs. 9 UStG. An invoice in foreign currency can go out only as PDF, not as E-Rechnung. It gives no individual tax or legal advice.

Frequently asked questions

I am a freelancer in Germany with a client in France. Do I add VAT?

If the client is a business with a valid VAT ID and you provide a normal service: no. Write both VAT IDs and „Steuerschuldnerschaft des Leistungsempfängers“ on the invoice, issue it by the 15th of the next month, and file the EC Sales List.

My client is a US company. Do I write reverse charge on the invoice?

German law does not require that wording for non-EU clients. Charge no German VAT and write a note that the service is not taxable in Germany. Report it in Kennzahl 45. No EC Sales List.

What does 13b UStG mean, simply?

§ 13b UStG lists cases where the customer, not the seller, owes the VAT. The main cases are services bought from foreign suppliers and construction work between construction businesses.

When is the zusammenfassende meldung due and where do I file it?

On the 25th day after the quarter for services, and usually after the month for goods above €50,000 a quarter. You file it electronically with the Federal Central Tax Office. No permanent extension applies to it.

I do not have a VAT ID yet. Can I invoice my EU client?

The invoice needs both VAT IDs, and you need a VAT ID for the EC Sales List. Apply for it first, and watch the 15th-of-next-month date. Ask your tax office about the status if it is close.

My UG is a Kleinunternehmer and I bought Facebook ads from Ireland. Do I owe anything?

Normally yes. You owe the German VAT as the customer, and you must file a VAT advance return for that period. You cannot deduct it. Check the invoice first, and ask a tax adviser if the amounts are large.

Primary sources and scope

Authoritative references for the key claims on this page. Check the current text before making a filing or accounting decision.