VAT Reverse Charge: 🇩🇪 Germany to 🇦🇹 Austria
Cross-border B2B services · Reverse charge mechanism · Article 196, EU VAT Directive 2006/112/EC
Invoice at 0% VAT
For B2B services from a VAT-registered business in Germany to a VAT-registered business in Austria, reverse charge applies. You do not charge 19% Germany VAT. The customer accounts for 20% Austria VAT locally.
Invoice checklist
- State your Germany VAT number (DEXXXXXXXXX)
- State the customer's Austria VAT number (ATUXXXXXXXXX)
- Set VAT rate to 0% — do not charge 19%
- Add: "VAT reverse charge — Article 196, Directive 2006/112/EC"
- Report in your EC Sales List (ESL/VIES) as a service supply
- Verify the customer VAT number at VIES and keep the confirmation
Calculate for Germany → Austria
Enter the net invoice amount to see the breakdown:
Frequently Asked Questions
Common questions about VAT reverse charge for Germany to Austria services.
Yes. When a VAT-registered business in Germany supplies B2B services to a VAT-registered business in Austria, the reverse charge mechanism applies under Article 196 of EU VAT Directive 2006/112/EC. The Germany supplier invoices at 0% VAT, and the Austria customer self-accounts for VAT at their local rate of 20%.
If the customer is VAT-registered, put 0% VAT on the invoice. You must include the customer's Austria VAT number and the note: "VAT reverse charge — Article 196, Directive 2006/112/EC". Do not charge Germany VAT (19%) on cross-border B2B service invoices.
The standard VAT rate in Austria is 20%. When reverse charge applies, the Austria customer declares 20% VAT in their local VAT return and simultaneously deducts it as input VAT — so the net cash effect is zero for a fully VAT-registered business.
Yes. You must report cross-border B2B services in your EC Sales List (ESL), also known as VIES or Recapitulative Statement. Report these as services (not goods) using the customer's Austria VAT number. Filing frequency depends on Germany's local rules — typically monthly or quarterly.
If the customer in Austria does not have a VAT number, reverse charge does not apply. For B2C supplies or non-registered businesses, different rules apply. For most services, you would charge Germany VAT (19%). For digital/electronically supplied services, Austria VAT (20%) may apply via the EU One Stop Shop (OSS) scheme.
Verify the customer's VAT number using the EU VIES system at ec.europa.eu/taxation_customs/vies before issuing a zero-rated invoice. Austria VAT numbers start with the prefix "ATU". Keep a record of the VIES confirmation for your audit trail.
Reverse charge under Article 196 applies to most B2B services where the place of supply is the customer's country. Some services have special rules — for example, services related to immovable property are taxed where the property is located, and short-term vehicle hire has specific rules. For standard professional, consulting, digital, and software services between Germany and Austria, reverse charge applies.
Your invoice must include: (1) Your Germany VAT number, (2) The customer's Austria VAT number, (3) 0% VAT / VAT amount: 0.00, and (4) The legal reference: "Reverse charge — Article 196, Council Directive 2006/112/EC". Some suppliers also add the Austria equivalent note in German: "Steuerschuldnerschaft des Leistungsempfängers".
VAT Rates & Authorities
- Standard VAT rate
- 19%
- VAT number prefix
- DE
- Currency
- EUR
- Tax authority
- Bundeszentralamt für Steuern
- Standard VAT rate
- 20%
- VAT number prefix
- ATU
- Currency
- EUR
- Tax authority
- Finanzamt