Reverse charge in Switzerland and Austria
April 16, 2021 | 25,00 EUR | answered by Steuerberater Knut Christiansen
Do invoices to Switzerland and Austria follow the reverse charge procedure, or do I have to show VAT on the invoices?
Since the countries are not in the EU, I am unsure as conflicting information can be found.
Do I have to calculate VAT or can I apply the reverse charge procedure and not show VAT on the invoices because customers must pay it themselves?
Good morning,
I am happy to try to help you within the scope of an initial consultation, taking into account the fee (of which I only receive half). Unfortunately, you have not specified to whom the invoices should be addressed (private or company) or whether it concerns deliveries or services.
I assume that the services provided are to companies. In both cases, the place of performance according to § 3a para. 2 VAT is not in Germany but in Austria or Switzerland. Services to Austrian customers would be subject to the reverse charge procedure (Austria is part of the EU). VAT would not be shown on the invoice (reference to reverse charge). Also, on the invoice to the Swiss company, no German VAT would be shown. Switzerland has a similar system to reverse charge, but only for supplying companies with a total turnover worldwide of max. 100,000 CHF. In that case, the liability for tax would be reversed. Otherwise, you would have to register in Switzerland and pay the Swiss VAT there (including showing the Swiss VAT on the invoice). Here are some tips on Switzerland: https://www.suedlicher-oberrhein.ihk.de/international/switzerland/value-added-tax-in-switzerland-3811962.
Please note that this forum cannot replace personal advice, but only allows for an initial tax assessment.
Kind regards
Knut Christiansen
Tax consultant
