International Reverse Charge 2026: B2B Invoices Abroad

Your client is in San Francisco, London, or Madrid. As a German freelancer you must know: no German VAT on this invoice. The rules are reverse charge (EU) and place of supply abroad (third country). Misapplied = either 19% VAT lost or tax-risky. This guide covers the basics.

In short: For B2B services to EU clients → reverse charge (§13b UStG): invoice without German VAT, client reports VAT in their country. VAT ID required. Quarterly Zusammenfassende Meldung. For third countries (US, UK, Switzerland): service not taxable in Germany, also no VAT, no ZM. Both rules apply even for Kleinunternehmer.

The core principle: place-of-supply

First step for any international invoice: where does the service take place for tax purposes?

Services (§3a UStG)

• B2B (client is business): place of supply = client’s location
• B2C (client is individual): place of supply = your location (Germany)

For B2B services to international businesses, the service occurs outside Germany → no German VAT.

Goods deliveries

More complex. Rarely relevant for freelancers, who typically sell services.

Three scenarios

Scenario 1: EU B2B client

Example: your client is a French GmbH (SARL).

• Reverse charge under §13b UStG
• Invoice without German VAT
• Your VAT ID + client’s VAT ID on the invoice
• Note: “Reverse charge procedure, recipient liable for VAT” or “VAT reverse charge applies”
• Client reports VAT in France themselves
• You file Zusammenfassende Meldung (ZM) quarterly at the BZSt

Scenario 2: Third-country B2B client (US, UK, Switzerland)

Example: your client is a US Corporation.

• Place of supply = USA (not Germany)
• Invoice without German VAT
• Note: “Not subject to German VAT, §3a Abs. 2 UStG”
• No ZM required (only for EU turnover)
• Client handles local tax under their law (e.g. US Sales Tax, if applicable)

Scenario 3: B2C client abroad

Example: a private individual in Austria pays for your consulting.

• Place of supply = Germany (your location, because B2C)
• German VAT (19%) on the invoice
• Treat like a domestic B2C invoice

Special rule: certain B2C services

For certain electronically provided services (streaming, software downloads, online courses) to EU consumers, the OSS procedure (One-Stop-Shop) applies. Then you must charge the client-country VAT and remit via OSS. For most standard freelancer services (consulting, design, software development), not relevant.

The VAT ID: mandatory for all international B2B

Why

• Without VAT ID, no reverse charge → you’d have to charge German VAT
• With VAT ID: no-VAT invoice is legal
• Even Kleinunternehmer must have it for EU B2B clients

Application

• At the Bundeszentralamt für Steuern (BZSt) online
• Free
• Duration: 2-6 weeks
• Own number with DE prefix (DE123456789)

Verifying client’s VAT ID

• Before invoicing: check client’s VAT ID via MIAS (VIES) in the EU portal
• Valid + confirmed = reverse charge applicable
• Not valid = no reverse charge; you must charge German VAT (or decline the work)

The Zusammenfassende Meldung (ZM)

Mandatory for EU B2B turnover.

Contents

• Client’s VAT ID
• Net amount
• Service type (service vs goods)

Deadlines

• Quarterly at the BZSt (by the 25th of the month following the quarter)
• Turnover over €50,000 per quarter: monthly

Submission

• Online via ELSTER or BZSt portal
• Fine for missing: up to 5% of turnover

Invoice mandatory fields

EU B2B invoice

• All normal invoice requirements under §14 UStG
• Your VAT ID + client’s VAT ID
• Net amount without VAT
• Note: “Reverse-Charge-Verfahren, Steuerschuldnerschaft des Leistungsempfängers, §13b UStG” or English: “VAT reverse charge applies, Art. 196 EU VAT Directive”

Third-country B2B invoice

• All normal invoice requirements
• Your VAT ID (useful even if not strictly required)
• Net amount without VAT
• Note: “Not subject to German VAT, §3a(2) UStG”

Example invoice

German freelancer to French GmbH

INVOICE No. 2026-045
Date: 15.05.2026

Max Mustermann
Musterstr. 1
12345 Berlin
VAT ID: DE123456789

To:
Kunde SARL
101 Rue de la République
75002 Paris, France
VAT ID: FR12345678901

Service description:                  Amount
Software development (April 2026)     €3,500.00

Net amount:                           €3,500.00
VAT:                                      €0.00
Total:                                €3,500.00

Reverse-charge procedure, recipient liable for VAT,
§13b UStG.

VAT reverse charge applies under Art. 196
of EU VAT Directive 2006/112/EC.

Payable within 14 days to:
IBAN: DE89 3704 0044 0532 0130 00
BIC: COBADEFFXXX

Kleinunternehmer and reverse charge

Even as Kleinunternehmer:

• You issue invoices without German VAT (as with German Kleinunternehmer clients)
• But: you must still explicitly mark the reverse-charge procedure
• And you need a VAT ID
• And you must file the Zusammenfassende Meldung

Many Kleinunternehmer forget the ZM and later get fines.

Special case: online platforms

When you render services through platforms (YouTube, Twitch, Patreon, OnlyFans), the platform locations often apply:

• YouTube/Google Ireland: reverse charge (see Influencer tax)
• Twitch Amsterdam: reverse charge
• Patreon (Ireland): reverse charge
• OnlyFans (UK): third-country treatment since Brexit

The platform usually provides clear invoicing guidelines.

Common mistakes

1. Charged German VAT to EU B2B clients. Finanzamt reclaim, client needs correction invoice.
2. No VAT ID check on client. Invalid VAT ID = no reverse charge.
3. Missed Zusammenfassende Meldung. Quarterly requirement, fines up to 5%.
4. Third country treated like EU. US/UK need different note and no ZM.
5. Kleinunternehmer think they’re exempt. Reverse charge and ZM also apply.
6. Note only in German. International client may not understand “Steuerschuldnerschaft” — add English note.

Related topics

• New freelancer registration
• VAT for freelancers
• Influencer & content creator tax

How Restio helps

International invoices are a form-based topic, but error-prone. Restio keeps it clean:

• Client classification — enter country and company type; Restio tells you reverse charge or not.
• VAT ID check — Restio verifies the client’s VAT ID automatically via MIAS.
• Invoice generator — creates invoices with correct mandatory notes in DE + EN.
• ZM reminder — Restio reminds you before each quarter of the Zusammenfassende Meldung.
• Instant answers — “US client without VAT ID — what now?”, “How does YouTube AdSense count?”, “Kleinunternehmer + international client” — in English or German.

International B2B work is manageable tax-wise with a bit of discipline. Know the rules and you invoice abroad as smoothly as domestically.