Reverse charge in Germany in 2026: when the recipient settles VAT
Reverse charge doesn't automatically mean "B2B VAT-free." First, determine the taxable place, transaction category, and status of both parties.
Reverse charge is the recipient's responsibility, not a 0% rate
In standard sales, the supplier reports VAT. In reverse charge, the recipient calculates the tax due, and the supplier does not report German VAT on the invoice.
The person responsible for its settlement changes.
The transaction must fall into the appropriate category of §13b.
DE USt-IdNr. does not prove the involvement of a German mission.
The annotation is the result of the legal qualification of the transaction.
Four steps before issuing an invoice
If outside Germany, German §13b is usually not the starting point.
Check section 1, section 2 and statutory exclusions.
Investigate the recipient's location, facility, and conditions for a given category.
Determine the invoice, tax point, rate and proper reporting.
Don't start with the invoice text. First, the type of service and place of taxation, then §13b, the status of the parties, and the document.
B2B service provided to a recipient in Germany
Pursuant to §3a paragraph 2, a typical service for an entrepreneur is, in principle, taxed where the recipient runs the business or where the facility for which the service was provided is located.
Consulting, marketing, IT
If the place of supply is in Germany and the service provider from another EU country does not operate through a participating German branch, VAT is most often settled by the recipient.
Real estate, admission, transportation
Real estate services, entry rights, part of the transport or short-term rental of means of transport may have separate place of supply rules.
Consulting service for a company from Berlin
The service is subject to the general B2B principle and the service provider does not have an establishment in Germany involved in the transaction.
The tool is compatible with the EU VIES system and helps document the results of the check. The active number supports party identification but does not, by itself, determine the scope of Article 13b.
Check your EU VAT number in VIESDE VAT ID does not exclude reverse charge
The VAT number is an identifier
A company can have a Steuernummer and DE USt-IdNr., submit declarations, and still remain a foreign entrepreneur for a given service.
Compare the functions of the numbers in the VAT Number in Germany.
The facility's participation counts
If a German permanent establishment exists, investigate its resources and actual involvement in a specific transaction. An address, warehouse, or accounting entry alone doesn't complete the analysis.
What transactions can be covered by §13b UStG?
The catalog is broader than cross-border services. Many categories require additional testing of the product, value, or recipient's business profile.
| Transaction | Is RC possible? | What decides? |
|---|---|---|
| A typical B2B service from a supplier from another EU country | Usually yes | Place in Germany pursuant to §3a paragraph 2 and status of the parties |
| Werklieferung or other service provided by a foreign entrepreneur | Possible | Nature of the service, German VAT place and §13b paragraph 2 point 1 |
| Construction services or building cleaning | Conditionally | Special status of the recipient; B2B alone is not enough |
| Gas, energy and telecommunications | Conditionally | Transaction model and recipient's business profile |
| Waste and scrap from Anlage 3, specific gold | Possible | Accurate statutory classification of goods |
| Phones, tablets, consoles, integrated circuits | From 5,000 EUR | Only specified goods and one economic event |
| Metal goods from Anlage 4 | From 5,000 EUR | Attachment item, threshold and recipient status |
For standard deliveries from a German warehouse, VAT is most often settled by the seller. The specific category must be specified in §13b. See also Amazon FBA in Germany and VAT.
Threshold €5,000: Electronics and goods from Anlage 4
The supply of covered smartphones will not normally fall under section 10 unless it is part of a larger event.
For the specified electronics, the classification, recipient status and other conditions must still be confirmed.
Splitting one order into several invoices does not necessarily create separate limits.
Phones, tablets, consoles and certain chipsets before installation.
Selected items include silver, platinum, steel, copper and aluminum.
Only designated waste, scrap and material residues.
Specific form and fineness of at least 325 thousandths.
Trade name is not sufficient. "Steel," "scrap," or "electronics" are not a stand-alone basis for reverse charge. Compare the goods with the current wording of the regulation and annex.
Construction and building cleaning
The recipient must meet a specific test
Reverse charge may cover work involving the construction, repair, maintenance, alteration, or removal of a structure. The key factor is whether the recipient consistently performs the relevant construction services.
An ordinary end customer is not enough
During cleaning, the recipient must permanently perform the appropriate services. The Finanzamt certificate can confirm status for a maximum of three years.
Bauabzugsteuer, 15% deduction, Freistellungsbescheinigung and execution models require a separate industry analysis.
What does a reverse charge invoice look like?
The tax due is determined by the recipient at the German rate applicable to the service.
In a domestic transaction covered by §13b paragraph 2, §14a paragraph 5 requires German wording.
VAT numbers support identification but do not replace the location and status test.
Full Invoice Requirements
Mandatory elements, deadlines and corrections can be found in the VAT invoice guide in Germany.
E-invoice in Germany
Separately check the obligation to receive and issue a structured document: e-invoice in Germany.
VAT is not always generated on the invoice date
For services under §3a paragraph 2: the end of the period in which the service was performed. This may be a month or a quarter.
The tax arises when the invoice is issued, no later than the end of the month following the provision of the service.
Prepayment can speed up settlement, and continuous services over a year have a year-end rule.
Output VAT and deduction are two separate steps
Example at 19% rate
Full neutrality will only occur if the recipient has a full right of deduction.
The calculator calculates net, VAT and gross, but does not assess whether §13b applies or what rate is correct for a specific transaction.
Open the EU VAT calculatorEU supplier → Germany
The German recipient reports §13b in his/her settlement. He/she does not report the received service in the German ZM.
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Germany → other EU country
A German supplier of a typical B2B service generally lists it in the German VAT register, and the recipient settles VAT locally.
The deadlines and settlement fields are described in the guide to VAT declarations in Germany.
Incorrect VAT and missing annotations are different problems
Tax shown without a basis may itself become due on the part of the issuer.
The recipient may still be obliged to settle §13b despite the incorrect invoice.
It does not remove the recipient's obligation if the material conditions of the mechanism are met.
Correct the qualification, invoice and – if necessary – declarations of both parties.
The mechanism must be established by law. Limited protection for agreed qualifications does not replace pre-transaction analysis.
Checklist §13b UStG
- Describe the actual subject of the transaction: goods, services or complex benefits.
- Determine the place of taxation according to the rule appropriate for this benefit.
- Find the category in §13b section 1 or section 2 and check the exclusions.
- Verify the registered office, permanent establishment and its share on the supplier's side.
- Check the required recipient status, especially in specific industries.
- With electronics and Anlage 4, investigate €5,000 for the entire event.
- For metals, waste and gold, confirm the statutory classification.
- Do not mark reverse charge as a 0% rate and add the appropriate note.
- Determine the moment of tax, advance payments, continuing benefits and the UStVA period.
- Record the evidence: VIES, contract, facility status and basis of classification.
Not sure who should settle VAT?
We'll verify the taxable place, §13b category, party status, invoice, and reporting. In the event of an incorrect settlement, we'll also help plan a correction.
Adrian Andrzejewski · CEO TaxenlightConsult the transactionReverse charge in Germany - questions and answers
Is every B2B service to Germany subject to reverse charge?
No. First, determine the place of supply and check the §13b category, supplier, and recipient status. Some services are subject to special rules or exclusions.
Is the invoice issued without German VAT?
Yes, if the recipient is the taxpayer in accordance with §13b. German VAT is not shown on the invoice and the transaction is not marked as a 0% rate.
Does DE VAT ID of the supplier exclude §13b?
No. The number itself does not indicate a German registered office. If a Betriebsstätte exists, it must be determined whether it is involved in a specific transaction.
Does the absence of the "reverse charge" notice exempt the recipient from VAT?
No. The obligation arises from the law if the material conditions are met. However, a defective invoice must be corrected.
Can the recipient deduct VAT from reverse charge?
Yes, if the purchase is for business purposes that entitles the deduction and there is no statutory limitation. Neutrality is not automatic.
What is the threshold for the specified electronics?
€5,000 of the value of covered goods within a single economic event. This threshold applies only to certain phones, tablets, consoles, and integrated circuits.
First the place and category, only then the invoice
Reverse charge in Germany results from the classification of the transaction. B2B, DE VAT ID, and the annotation itself do not determine §13b. The safest path is: place of taxation → §13b directory → status of parties → invoice, VAT date, and reporting.
