Reverse Charge Germany: When and How It Applies

When a non-German business provides services to a German business, the reverse charge applies under §13b UStG. The German buyer must: • Self-assess VAT at the applicable German rate • Report it as both output and input VAT • Include both on their Voranmeldung

The foreign supplier issues an invoice without German VAT.

Germany also applies domestic reverse charge for: • Construction services (Bauleistungen) between businesses in the construction sector • Scrap metal and waste materials • Real estate transfers under option to tax • Temporary workers (in certain situations) • Carbon emission certificates • Mobile phones and tablets (above €5,000)

A reverse charge invoice must include: • Supplier's VAT number • Client's German USt-IdNr • Net amount only • Note: 'Steuerschuldnerschaft des Leistungsempfängers' (§13b UStG)

Do NOT include VAT amount or rate. The buyer handles VAT declaration.