Reverse charge: on your invoices and for expenses from abroad

When the VAT liability shifts to the recipient, what goes on the invoice, and how to book services from abroad correctly in Norman.

Updated September 7, 2026

What is reverse charge?

Under the reverse-charge mechanism, the recipient of the service owes the VAT, not the supplier. As the supplier, you issue the invoice without VAT, and your business customer accounts for the tax in their own country. As the recipient of a service from abroad, it works the other way round: you owe the German VAT and usually deduct it as input VAT at the same time.

Your invoices: when does it apply?

Typically for services to businesses elsewhere in the EU, for example consulting, software or design. It requires a valid VAT ID of your customer. For businesses outside the EU, most services are taxable where the recipient is, so you charge no German VAT.

Goods delivered to EU businesses are tax-free intra-community supplies, goods delivered outside the EU are tax-free exports. Here too, no VAT appears on the invoice.

What goes on the invoice?

no German VAT
the note "Steuerschuldnerschaft des Leistungsempfängers (§ 13b UStG)" or "Reverse charge, Art. 196 VAT Directive 2006/112/EC"
your VAT ID and your customer's VAT ID

In Norman you choose the customer's country and enter their VAT ID. Norman leaves the VAT out, adds the note to the invoice automatically, and includes the sale in the UStVA and the EC Sales List. If one of the two VAT IDs is missing, Norman tells you: reverse charge to an EU business applies only when both are on the invoice. Read Why can't I see the Zusammenfassende Meldung?.

Your expenses: book services from abroad

Software subscriptions, advertising, hosting or freelancers from abroad often invoice you without VAT. Then you owe the German VAT under § 13b UStG. Norman handles this in the UStVA when the transaction is set correctly:

Open the expense in Bookkeeping.
In the Tax & VAT section, set the Supplier country: Germany, Inside the European Union or Outside the European Union.
Answer Was VAT charged? as it appears on the invoice.

The Tax and VAT section of an expense with the supplier country in the EU, no VAT charged, and the reverse-charge note, in the German interface — The screenshot shows the German interface. A service from the EU without VAT: Norman confirms below the fields that reverse charge applies, and calculates with the expected German rate.

Norman shows you right below the fields how the expense is treated:

Case	What you choose	What Norman does in the UStVA
Service from an EU supplier without VAT	Inside the EU, No VAT was charged	Reports the net amount as a § 13b service (box 46) and deducts the tax again as input VAT (box 67). With full deduction the net effect is zero
Service from a supplier outside the EU without VAT	Outside the EU, No VAT was charged	Reports the net amount as a § 13b service from a third country (box 84) and the input VAT in box 67
Goods from an EU supplier without VAT	Inside the EU, sale type goods, No VAT was charged	Reports an intra-community acquisition (box 89 at 19%, 93 at 7%) and the matching input VAT
Goods from a country outside the EU	Outside the EU, sale type goods	The import VAT paid at customs is deductible as input VAT (box 62)
Invoice with German VAT	German VAT was charged	Normal input VAT like a domestic expense (box 66)
Invoice with foreign VAT	Foreign VAT was charged	No input VAT. You can reclaim foreign VAT only in the country of purchase. The expense stays gross

Kleinunternehmer

As a Kleinunternehmer you also owe the German VAT under § 13b UStG for services from abroad, without deducting it as input VAT. For such months you file a UStVA. The Klein plan covers these cases. Read Plans, managing and cancelling your subscription.

Common mistakes

A foreign invoice without VAT is booked with 19% like a domestic expense. Norman then deducts input VAT you never paid. Set the supplier country and No VAT was charged.
Foreign VAT, for example from Austria, is entered as German VAT. Choose Foreign VAT was charged.
The supplier country is missing. Norman then treats the expense as domestic.
The EC Sales List for services to EU businesses is forgotten. Norman creates it as soon as there are reportable sales.

If you are unsure, ask the Copilot: How does the reverse-charge procedure work? It knows your transactions.

Norman handles the operational finance work

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