Reverse charge invoice in Germany: wording and deadlines
Short answer: When you invoice a business in another EU country for services, the customer owes the VAT. Your German invoice shows no VAT, both parties' VAT IDs and the note „Steuerschuldnerschaft des Leistungsempfängers“ or „Reverse charge“. It must be issued by the 15th of the month after the service and reported in your quarterly EC Sales List.
German invoices with no VAT on them look wrong to many freelancers at first. They are not. Under reverse charge, the obligation to pay VAT moves from you to your customer, who accounts for it in their own country. For that to work, the invoice needs a few details a normal German invoice does not have. And there is a deadline that surprisingly few people know about.
When reverse charge applies
The term covers two different situations that look almost the same on paper.
The common one is a service to a business in another EU country. Say a developer in Leipzig builds a web app for a company in Rotterdam. Under § 3a(2) UStG, the place of supply for business-to-business services is where the customer is based, so the Dutch company pays Dutch VAT on it.
The second group is domestic. Under § 13b UStG, certain transactions inside Germany also shift the VAT to the customer. Examples include construction work for companies that themselves provide construction services, scrap metal, and services from foreign companies to German businesses. Everything stays in Germany, only the person liable for the tax changes.
| Criterion | VAT on invoice | Required note | Both VAT IDs |
|---|---|---|---|
| Business in Germany, standard case | |||
| Service to a business elsewhere in the EU | Reverse charge | ||
| Goods to a business elsewhere in the EU | Tax-free intra-Community supply | ||
| Domestic § 13b case, e.g. construction | Reverse charge | ||
| Business outside the EU (UK, US, CH), services | customary: not taxable in Germany |
Source: §§ 3a, 13b, 14a UStG
Goods shipped to another EU country are not reverse charge in the strict sense. They are a tax-free intra-Community supply and need a note on that exemption instead. Mixing up the two notes makes the invoice formally incorrect.
What goes on a reverse charge invoice
Start with everything a normal invoice needs, listed in the article on German invoice requirements. For a service to an EU business, § 14a(1) UStG adds three things:
- your own VAT ID, because your tax number is not enough here
- your customer’s VAT ID
- the note „Steuerschuldnerschaft des Leistungsempfängers“, or its English equivalent „Reverse charge“
Instead of a VAT rate and amount, the invoice carries that note. The small receipt shortcut does not apply either. § 33 UStDV excludes reverse charge cases, so even a €90 job needs the full set, as the article on the small amount invoice explains.
Sample invoice to a Dutch client
Invented example: Leipzig developer Jonas Weber, a regular VAT payer, invoices a Rotterdam startup in October 2026 for work done in September.
- Backend development, 52 hours at €90
- €4,680.00
- Deployment and handover, fixed fee
- €450.00
- VAT
- €0.00
- Note
- Steuerschuldnerschaft des Leistungsempfängers / Reverse charge
- Total due
- €5,130.00
Fictional example. Header shows both addresses, Weber's VAT ID DE999999999 and the client's VAT ID NL999999999B01.
The work was done in September. The latest date for this invoice was therefore 15 October 2026.
The deadline: the 15th of the following month
For domestic business invoices, you have six months. For services to other EU countries, § 14a(1) UStG gives you about two weeks: the invoice must be issued by the 15th day of the month after the month in which you provided the service. Monthly invoicing keeps you safe without thinking about it. Batching everything at the end of a quarter does not.
Reporting runs in parallel. Under § 18a UStG, these services go into the EC Sales List (Zusammenfassende Meldung), filed with the Federal Central Tax Office via ELSTER. For services, it is due quarterly by the 25th day after the quarter ends. They also appear in your VAT pre-return, in a separate line for services not taxable in Germany.
Checking your client’s VAT ID
Reverse charge only works if the customer is a business, and in practice you prove that with a valid VAT ID. You can check foreign VAT IDs through the EU’s VIES service or through the Federal Central Tax Office (BZSt), which offers a confirmation service for foreign VAT IDs. Save the result with the invoice. It is your evidence that you supplied a business.
Check again from time to time with regular clients. Companies get deregistered, merge or move, and a VAT ID that was valid last year may not be valid today. Once a quarter, before you file the EC Sales List, is a sensible rhythm, because the tax authorities compare the numbers on that list with the other country’s register, and you would rather spot a problem before they do.
Clients outside the EU
Since Brexit, UK clients are outside the EU system, just like clients in the US or Switzerland. For most business services, the place of supply is still the client’s country, so you charge no German VAT. The German reverse charge note and VAT IDs are not required by law. Still, a short line such as „Not taxable in Germany (place of supply abroad)“ is customary and saves your client’s accountant a question. Whether your client then owes tax in their own country is their business, not yours.
The other direction: invoices you receive
Reverse charge also lands in your inbox. Software subscriptions, cloud storage and online advertising are often billed by companies in Ireland or the Netherlands, without VAT and with a reverse charge note. You then owe German VAT on the amount. On €500 of ads per month, that is €95 of VAT to report. As a regular VAT payer, you deduct the same €95 as input VAT in the same return, so the net effect is zero, but both lines must be there.
Small businesses under the Kleinunternehmer rule also owe that VAT and cannot deduct it, which makes it a real cost. The article on the Kleinunternehmer invoice covers that trap.
Common mistakes
Forgetting the note is the most frequent error. Next comes the German tax number where the VAT ID should be. If you do not have a VAT ID yet, apply for one before your first EU invoice. Third, German VAT charged out of habit. Then you owe it under § 14c UStG, while your client owes their own VAT too. The fix is a corrected invoice, described under cancel or correct an invoice.
If you bill many international clients through your own platform, the logic for tax liability and country checks should not live in a spreadsheet. OnlineBuilders builds this kind of billing logic into SaaS products.
Before your next EU invoice goes out, tick „Service to a business in another EU country“ in the invoice checker. It adds the note and the client’s VAT ID to the list of required details.
Check an invoice for mandatory details: Tick what your invoice contains.
Questions people ask
Is „Reverse charge“ in English enough on a German invoice?
Yes. The German tax authorities accept the equivalent wording in any official EU language, and „Reverse charge“ is the usual English version. Many freelancers print both the German and the English phrase.
Does reverse charge apply to clients in the UK, the US or Switzerland?
Not in the sense of the German rule for EU clients. For most business services to clients outside the EU, the place of supply is abroad and the service is not taxable in Germany. A note such as „Not taxable in Germany“ is customary, and VAT IDs are not required.
What if my client has no VAT ID?
Then be careful. Without a VAT ID you cannot easily show that the client is a business. For a private person in another EU country, many services are taxed in Germany, which means you charge German VAT.
Do I still need a VAT ID if I only work for UK and US clients?
Not for the invoices themselves. Many freelancers get one anyway, because EU suppliers of software and advertising ask for it. You apply at the Federal Central Tax Office (BZSt).
