Guide
Reverse charge invoice wording: what to write, and when
Under the reverse charge your client, not you, accounts for the VAT. Your invoice shows no VAT, but it has to say why, and the wording is not optional. Here is the text for the common cases from Germany, the EU and the UK, and what else has to be on the invoice.
What reverse charge means
Normally the seller charges VAT and pays it to the tax office. Under the reverse charge the business buying the goods or service accounts for the VAT in its own return instead. Usually it can deduct the same amount at once, so no money moves. For you as the seller it means: no VAT on the invoice, and a note that the customer is liable.
When it applies
- Services to a business in another EU country. The general rule is that a B2B service is taxed where the client is established (Article 44 VAT Directive), and the client pays the VAT (Article 196).
- Services and work supplies from a supplier abroad to a German business (§ 13b Abs. 1 and Abs. 2 Nr. 1 UStG), for example online advertising bought from a company in Ireland.
- Certain domestic supplies in Germany (§ 13b Abs. 2 UStG), for example construction work, building cleaning, and mobile phones, tablets, games consoles and chips from €5,000 per transaction.
- UK: a UK business buying services from abroad accounts for UK VAT itself (VAT Notice 741A). There is also a UK domestic reverse charge, mainly for construction services under CIS.
Not every “no VAT” invoice is reverse charge. Services to a business outside the EU are usually just not taxable in Germany, and goods sent to another EU business are an exempt intra-Community supply. Each needs its own note.
The exact wording
| Case | Wording on the invoice | Rule |
|---|---|---|
| EU B2B service, any EU seller | Reverse charge | Art. 226 point 11a VAT Directive |
| German seller, § 13b case or EU B2B service | Steuerschuldnerschaft des Leistungsempfängers | § 14a Abs. 1 and 5 UStG |
| UK domestic reverse charge (construction) | Reverse charge: customer to pay the VAT to HMRC (or: S55A VATA 94 applies) | HMRC technical guide |
| UK seller, B2B service to an EU client | Outside the scope of UK VAT. Reverse charge: VAT to be accounted for by the recipient. | Not prescribed by HMRC; common practice (VAT Act 1994 s7A, Art. 196 VAT Directive) |
For a German invoice to a client in another EU country, a bilingual line covers both rules: “Steuerschuldnerschaft des Leistungsempfängers / Reverse charge”. The German phrase is simply the German language version of the Directive's “Reverse charge”; the English one is understood everywhere.
What else the invoice needs
- Both VAT IDs for EU B2B services: yours and your client's (§ 14a Abs. 1 UStG). Check your client's ID in VIES before you invoice.
- No VAT amount and no VAT rate on a German or EU reverse charge invoice; show the net amount only. Under the UK domestic reverse charge, HMRC asks you to state the VAT due (or the rate) without adding it to the total.
- Deadline in Germany: for an EU B2B service, issue the invoice by the 15th of the month after the service (§ 14a Abs. 1 UStG).
- Reporting: German sellers report EU B2B services in the recapitulative statement (Zusammenfassende Meldung) to the BZSt (§ 18a UStG) and in the VAT return.
Reverse charge as a Kleinunternehmer
The small business rule in § 19 UStG does not cover tax you owe as the buyer. If a Kleinunternehmer in Germany buys a service from abroad that falls under § 13b, for example online advertising from a company in Ireland, they owe the German VAT on it and cannot deduct it (BMF letter of 18 March 2025, section 19.1). Many people only notice this when the tax office asks.
Check your case
The VAT helper asks where you and your client are, whether the client is a business, and what you sell. It says whether reverse charge applies and gives you the invoice text in English and German, with the source.
Questions
What do I write on a reverse charge invoice?
In the EU: “Reverse charge”. From Germany: “Steuerschuldnerschaft des Leistungsempfängers”, ideally both. Add both VAT IDs and show no VAT amount.
Do I need my client's VAT number for reverse charge?
Yes, for EU B2B services. Both VAT IDs must be on the invoice, and checking the client's ID in VIES is your proof that they are a business.
Is a service to a US client reverse charge?
Not in the EU sense. A B2B service from Germany to a client outside the EU is usually not taxable in Germany; the invoice says so instead. The client's country decides about its own taxes.
Does reverse charge apply to Kleinunternehmer?
Yes, when they buy: § 19 UStG does not cover tax a Kleinunternehmer owes as recipient under § 13b, for example on services from abroad.
What wording does HMRC accept for the domestic reverse charge?
The invoice must say that the reverse charge applies and the customer accounts for the VAT. HMRC's examples include “Customer to pay the VAT to HMRC” and “S55A VATA 94 applies”.
Sources
- Council Directive 2006/112/EC (VAT Directive), Articles 44, 196 and 226
- § 13b UStG: recipient liable for the tax (German law text)
- § 14a UStG: invoices in special cases (German law text)
- § 18a UStG: recapitulative statement (German law text)
- HMRC: VAT domestic reverse charge technical guide (updated 18 September 2024)
- HMRC: VAT place of supply of services (VAT Notice 741A)
- BMF letter of 18 March 2025 on the small business rules (German)
- European Commission: VIES VAT number check
This guide reflects the rules as of October 2026 and is not tax advice. For your own case, ask a tax advisor.