Reverse charge (§13b UStG)
When the recipient owes the tax: the Reverse Charge of tax liability explained in plain terms — with the invoice details that then become mandatory.
The principle in one paragraph
Normally the supplier shows the VAT and remits it. Under the reverse-charge procedure this is reversed: the recipient of the service owes the tax and declares it in their own country (where an input-VAT deduction applies, often a zero-sum game). You invoice net — with the statutory note 'Steuerschuldnerschaft des Leistungsempfängers' (Reverse Charge — the recipient of the service is liable for the tax).
| Case | VAT category (UNCL5305) | Your invoice | Legal basis |
|---|---|---|---|
| B2B service to an EU business (with USt-IdNr) | AE | net, 0 %, §13b note, USt-IdNr of both parties | §3a Abs. 2, §13b UStG |
| Intra-Community supply of goods | K | net, 0 %, note on the tax-exempt intra-Community supply | §4 Nr. 1b, §6a UStG |
| Export to a third country | G | net, 0 %, export note | §4 Nr. 1a, §6 UStG |
| Construction services/special domestic cases between businesses | AE (domestic) | net, §13b note | §13b Abs. 2 UStG |
| Cross-border carriage of goods (with a third-country nexus) | 0 % cases/O | net with the relevant note | §4 Nr. 3a UStG among others |
The pitfalls
- No valid USt-IdNr for the customer? Then no EU Reverse Charge — otherwise you end up owing the tax. CoolHanX warns you at exactly this point.
- Forgot the note text: The §13b note is a mandatory detail — without it the invoice is formally defective.
- Recapitulative statement (ZM): EU transactions with Reverse Charge must be reported in the ZM — your tax advisor needs the clean data (the DATEV export provides it).
- B2C is different: Reverse Charge does not apply to private individuals in the EU — here German VAT or OSS rules apply.
ZM, OSS & co. — the reporting side
Reverse-charge transactions within the EU do not only appear on the invoice: they belong in the recapitulative statement (ZM) filed with the BZSt and in the advance VAT return (codes for §13b transactions). Do not confuse the procedure with OSS (One-Stop-Shop): OSS concerns B2C distance sales into the EU — a different regime with its own return. Your tax firm needs clean, separated data for this: exactly what the export provides, because every invoice carries its VAT category in a structured form.
A worked example
Your freight-forwarding company invoices a Dutch B.V. (valid NL USt-IdNr) for a transport service of 2.500 €. Invoice: 2.500 € net, VAT 0 %, category AE, the note 'Steuerschuldnerschaft des Leistungsempfängers' (Reverse Charge — recipient liable), both USt-IdNrs. The B.V. taxes it in NL and usually deducts input VAT at the same time — you remit nothing but report it in the ZM. In CoolHanX exactly this document is created automatically as soon as the partner has NL + a USt-IdNr.
Frequently asked questions
Do I have to check the customer's USt-IdNr?
CoolHanX checks the format immediately; the qualified confirmation (BZSt/VIES) is strongly recommended for EU cases — there is a duty to provide evidence!
Does Reverse Charge also apply to small amounts?
Yes — there is no de minimis threshold.
What if the customer provides the USt-IdNr later?
Correct the invoice (cancellation + reissue) — do not simply 'repost' it.
Domestic Reverse Charge — what is that?
§13b Abs. 2 UStG: among others, construction services, building cleaning, certain metals — between domestic businesses. Whether your case falls under it is for your tax firm to clarify.
Do I need an e-invoice for Reverse Charge?
The cross-border case is (not yet) subject to the German e-invoicing mandate — but structured documents with the correct AE category save your tax firm the rework for the ZM and the advance return.
What if I mistakenly showed 19 %?
Then you owe the tax shown (§14c UStG) until the invoice is corrected — cancellation and reissue, not overwriting.
When Reverse Charge applies — and when it doesn't
Reverse charge under §13b UStG shifts the tax liability from the supplier to the recipient of the service. The most common case in practice among mid-sized businesses: a B2B service to a business in another EU country with a valid USt-IdNr — you invoice net (0 %, category AE) and show the statutory mandatory note. Alongside this there are domestic §13b cases (e.g. certain construction services, building cleaning, scrap/metals). Reverse charge does not apply, however, to services to private individuals (B2C) or without a valid USt-IdNr of the recipient.
| Constellation | Treatment | Mandatory note / reporting |
|---|---|---|
| B2B service to an EU business (USt-IdNr) | 0 %, category AE | §13b note + ZM |
| Domestic construction service (§13b Abs. 2) | 0 %, the recipient owes the VAT | §13b note |
| Service to a private individual (B2C) | normally taxable | regular VAT shown |
| EU customer without a valid USt-IdNr | no Reverse Charge | warning, check regular VAT treatment |
The role of the USt-IdNr and the recapitulative statement
For correct application, the recipient's valid USt-IdNr is decisive — it is the entry ticket to the tax exemption or the shift of liability. CoolHanX checks the format immediately and flags a missing USt-IdNr before Reverse Charge is applied. Cross-border B2B transactions must also be declared in the recapitulative statement (ZM); the data needed for this is available in structured form in the document and in the export for your tax firm.
Related topics
Allgemeine Produktinformation — keine Rechts- oder Steuerberatung. Verbindliche Auskünfte gibt Ihr Steuerberater bzw. Ihre Rechtsberatung.
Ready? Up and running in two minutes — no credit card.
Create your free company account