Reverse charge: VAT for EU business customers

Definition

Reverse charge means that liability for VAT is reversed. When a German company provides a service to a business established in another EU country, the place of supply for many services is the customer's country. The invoice is then issued without German VAT, and the customer declares the tax in its own country.

As a rule, the customer must be a business and provide a valid VAT identification number. The invoice has to include a note that the recipient is liable for the tax, as well as the VAT numbers of both parties.

What it means for exhibitors

For exhibitors from other EU countries, such as Italy, Spain, France or Poland, the mechanism is often relevant when they use German service providers for their stand (booth) at a show. If you book photo and video from a German supplier, in many cases you receive an invoice without German VAT but have to account for the tax at home. That saves you paying German VAT and then going through the effort of reclaiming it.

What matters is that your VAT ID is available and correct before the invoice is issued. Also give the full company name and address as registered. For companies outside the EU, for example from Turkey, the Gulf, China or the US, a different rule applies: no German VAT is usually charged on such services. This text is an overview, not tax advice.

In practice

When you book, we ask for company name, address and, for EU businesses, the VAT ID. The invoice then carries the reverse charge note, so your accounts team can process it straight away.

At Pixer the package prices from €990 are all plus VAT where applicable. Companies outside the EU pay no German VAT; EU businesses with a valid VAT ID are invoiced under the reverse charge mechanism.

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