{"id":10128,"date":"2025-12-29T12:41:17","date_gmt":"2025-12-29T11:41:17","guid":{"rendered":"https:\/\/www.accountable.de\/help-center\/vat-on-eu-expenses-refunds-reverse-charge-2025-rules\/"},"modified":"2026-11-10T15:56:30","modified_gmt":"2026-11-10T14:56:30","slug":"vat-on-eu-expenses-refunds-reverse-charge-2025-rules","status":"publish","type":"help_center","link":"https:\/\/www.accountable.de\/en\/help-center\/vat-on-eu-expenses-refunds-reverse-charge-2025-rules\/","title":{"rendered":"VAT on EU Expenses: Refunds, Reverse Charge &#038; Rules"},"content":{"rendered":"<p class=\"no-margin font-inter\">As a self-employed person, you may make purchases outside of Germany but within the EU. In such cases, VAT can be handled in different ways. This article explains how it works and how you can claim back the VAT you&#8217;ve paid.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">This article also covers how the reverse charge mechanism works, what rules apply to small business owners (Kleinunternehmer), how to handle invoices with foreign VAT, and how to reclaim VAT paid abroad.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<h1 class=\"font-degular\" id=\"h_efacbb3f6a\">Reverse Charge Explained<\/h1>\n<p class=\"no-margin font-inter\">In intra-community transactions within the EU, such as when a German business purchases goods or services from a company based in another EU country, the so-called reverse charge mechanism is often applied. In this case, the VAT liability is reversed: the seller does not charge VAT. Instead, the buyer must calculate the VAT applicable in their own country and declare it in their VAT return.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">What this means for you: If you purchase goods or services from a company in another EU member state and provide your VAT identification number (VAT ID), you will generally receive an invoice without VAT, i.e. with a VAT rate of 0%. You are then required to calculate the applicable German VAT on the amount and report it in your VAT return.<br \/>\u200b<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">The good news: If you are entitled to deduct input VAT, you can claim the calculated VAT as input tax at the same time. As a result, there is no actual payment obligation. Although the process may sound a bit complicated at first, it is usually a bookkeeping zero-sum transaction. The goal is to ensure that VAT is paid in the country where the consumption takes place, your country, while also simplifying trade within the EU.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<h1 class=\"font-degular\" id=\"h_0a7b25a1e9\">Reverse Charge for VAT-Registered Self-Employed<\/h1>\n<p class=\"no-margin font-inter\">If you are subject to the regular VAT scheme (meaning you charge VAT on your invoices), you should <b>always provide your own VAT ID<\/b> when making business purchases within the EU. The foreign supplier will then issue the invoice <b>without charging VAT<\/b>, and will include a note indicating that the <b>reverse charge<\/b> applies (e.g. &#8220;VAT liability of the recipient&#8221;).<\/p>\n<div class=\"intercom-interblocks-callout\" style=\"background-color: #fed9db80; border-color: #fd3a5733;\">\n<p class=\"intercom-align-center no-margin font-inter\"><b>Tip:<\/b><br \/> Always include your VAT ID when ordering goods or services from other EU countries. That way, you avoid being charged foreign VAT, which <b>cannot<\/b> be reclaimed through your German VAT return.<\/p>\n<\/div>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<h1 class=\"font-degular\" id=\"h_d347e0f95d\"><b>Reverse Charge for Small Business Owners (Kleinunternehmer)<\/b><\/h1>\n<p class=\"no-margin font-inter\">The <i>Kleinunternehmerregelung<\/i> generally exempts the <b>sales you make as a small business owner<\/b> from German VAT, provided you meet the applicable requirements. However, this does not mean that you are exempt from all VAT obligations.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">One important exception is the <b>reverse charge mechanism<\/b>. If you purchase certain business services from a supplier abroad, the responsibility for declaring and paying German VAT can shift from the supplier to <b>you as the customer<\/b>. This also applies if you are a Kleinunternehmer.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">For services from a company established in another EU country, reverse charge can apply even if you did not provide your VAT ID. What matters is that you receive the service as a business and that the transaction falls under the reverse charge rules, not simply whether a VAT ID appears on the invoice.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">As a Kleinunternehmer, this has an important consequence: you must <b>declare and pay the German VAT<\/b> due under the reverse charge mechanism, but you <b>cannot deduct this amount as input VAT<\/b>. The VAT therefore becomes an actual cost for your business.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<h2 class=\"font-degular\" id=\"h_805457102a\"><b>How to record the expense in Accountable<\/b><\/h2>\n<p class=\"no-margin font-inter\">If your supplier is based in <b>another EU country<\/b>, enter the expense with <b>0% VAT<\/b> and select <b>&#8220;Intra-EU Reverse Charge&#8221;<\/b>. You can usually identify an EU supplier by the EU VAT ID shown on the invoice.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<div class=\"intercom-container intercom-align-center\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/downloads.intercomcdn.com\/i\/o\/c9wnmh12\/2694295337\/8b9210239635832be9214e2dc5b1\/Bildschirmfoto+2026-09-25+um+15_12_02.png?expires=1794376800&amp;signature=ed7195e214ce059e4e942922ecfe637aee53e7423f78dcbe7fc79c73957ab91b&amp;req=diYuEst3mIJcXvMW3nq%2BgdHt4l8G8ICrFVMe8Fm%2BKNx8ZJCb1g75qSk%2FDJ8I%0AqcQC6rarUE5LBGqfte3eyNgdv9E%3D%0A\" width=\"1040\" height=\"878\" style=\"height: auto;\"><\/div>\n<p class=\"no-margin font-inter\">If your supplier is based <b>outside the EU<\/b>, enter the expense with <b>0% VAT<\/b> and select <b>&#8220;Purchase from outside the EU&#8221;<\/b>.<\/p>\n<div class=\"intercom-container intercom-align-center\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/downloads.intercomcdn.com\/i\/o\/c9wnmh12\/2694295596\/28fa95de7a98c221a410641a3d9f\/Bildschirmfoto+2026-09-25+um+15_12_14.png?expires=1794376800&amp;signature=be5b488bbdb366bb294cfd19af85e53533fd22d613a4a09fbdd7b85de1c6497f&amp;req=diYuEst3mIRWX%2FMW3nq%2BgVGcotOEXjxufS14FBFwRj6we5Ga58bPcDbfmHHM%0A0P4CHKGf79dqvsgQmW9le40BxX4%3D%0A\" width=\"1040\" height=\"918\" style=\"height: auto;\"><\/div>\n<div class=\"intercom-interblocks-callout\" style=\"background-color: #fed9db80; border-color: #fd3a5733;\">\n<p class=\"intercom-align-center no-margin font-inter\">\ud83d\udca1<b>Important for Kleinunternehmer:<\/b><\/p>\n<p class=\"intercom-align-center no-margin font-inter\">If you need to submit a VAT pre-submission (<i>Umsatzsteuer-Voranmeldung<\/i>) due to reverse charge, please note that Kleinunternehmer currently <b>cannot submit VAT pre-submissions through Accountable<\/b>. You will therefore need to submit it separately via ELSTER.<\/p>\n<p class=\"intercom-align-center no-margin font-inter\">For step-by-step instructions, see our guide: <a href=\"https:\/\/help.accountable.eu\/en\/articles\/15947088-filing-a-vat-pre-submission-on-elster-as-a-kleinunternehmer-how-it-works-for-transactions-under-13b-ustg?utm_source=chatgpt.com\" target=\"_blank\" class=\"intercom-content-link font-inter\">Filing a VAT pre-submission on ELSTER as a Kleinunternehmer, transactions under \u00a7 13b UStG<\/a><\/p>\n<\/div>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<h1 class=\"font-degular\" id=\"h_0d58e519a9\">Invoices with Foreign VAT: What Should You Do?<\/h1>\n<p class=\"no-margin font-inter\">In practice, it&#8217;s common for self-employed professionals to receive invoices that include <b>foreign VAT<\/b>, especially for travel expenses like hotel bills, restaurant receipts, rental cars, or trade show tickets in other EU countries. It can also happen if you forget to provide your VAT ID during the booking or order process.<\/p>\n<div class=\"intercom-interblocks-callout\" style=\"background-color: #fed9db80; border-color: #fd3a5733;\">\n<p class=\"intercom-align-center no-margin font-inter\">Important to know:<\/p>\n<p class=\"intercom-align-center no-margin font-inter\"><b>You cannot deduct foreign VAT<\/b> through your German VAT return.<\/p>\n<\/div>\n<p class=\"no-margin font-inter\"><b>For your bookkeeping:<\/b> Record such expenses <b>at the gross amount<\/b>. The full invoice total, including foreign VAT, counts as a <b>business expense<\/b>, but <b>you won&#8217;t get an input VAT refund<\/b>. So as a VAT-registered business, <b>you lose money<\/b> when you pay foreign VAT, since it cannot be refunded via the German tax system. As a small business owner, you&#8217;re used to this anyway, as you book all your expenses as gross amounts.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<h1 class=\"font-degular\" id=\"h_403cc3b9bb\">VAT Refund Procedure: How to Get Foreign VAT Back<\/h1>\n<p class=\"no-margin font-inter\">Thankfully, if you&#8217;re VAT-registered, you <b>don&#8217;t necessarily have to write off foreign VAT<\/b> as a cost. You can apply for a <b>VAT refund<\/b> using the <b>VAT refund procedure (Vorsteuerverg\u00fctungsverfahren)<\/b>.<br \/>\u200b<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">For EU countries, this process is relatively simple and handled via an <b>online application<\/b> at the <b>German Federal Central Tax Office (BZSt)<\/b>. You upload your foreign invoices and submit a refund request.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">Important conditions:<\/p>\n<ul>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">You must be <b>entitled to input VAT deduction<\/b> in Germany (i.e. not a small business owner),<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">And you must <b>not have been VAT-registered<\/b> in the other EU country during the refund period.<\/p>\n<\/li>\n<\/ul>\n<p class=\"no-margin font-inter\">The deadline is typically <b>September 30 of the following year<\/b>.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">This process is worthwhile if you&#8217;ve accumulated <b>larger amounts of foreign VAT<\/b>, e.g. from high trade fair fees or frequent hotel stays abroad. For smaller amounts, the administrative effort may not be worth it.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\">For VAT paid outside the EU (e.g. on business trips to non-EU countries), refunds may also be possible, but the rules vary by country and often require applications to be submitted <b>directly to the foreign tax authority<\/b>.<br \/>\u200b<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<p class=\"no-margin font-inter\"><b>Important:<\/b> Small business owners <b>cannot participate<\/b> in the VAT refund procedure, as they are <b>not entitled to input VAT deduction<\/b>. This means foreign VAT is always part of your business expenses and <b>cannot be refunded<\/b>.<\/p>\n<p class=\"no-margin font-inter\">\u200b<\/p>\n<h1 class=\"font-degular\" id=\"h_53d7df5672\">Key takeaways<\/h1>\n<ul>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">The <b>reverse charge mechanism<\/b> shifts the VAT obligation to you as the buyer: you receive an invoice at 0% VAT and report the German VAT yourself.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">If you are entitled to input VAT deduction, reverse charge is usually a bookkeeping zero-sum transaction.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">As a <b>Kleinunternehmer<\/b>, reverse charge still applies, but you cannot deduct the VAT as input tax, making it a real business cost.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">Foreign VAT on invoices (e.g. hotel costs in other EU countries) is recorded as a <b>gross business expense<\/b> with no input VAT deduction available.<\/p>\n<\/li>\n<li class=\"font-inter\">\n<p class=\"no-margin font-inter\">VAT-registered businesses can reclaim EU VAT via the <b>VAT refund procedure (Vorsteuerverg\u00fctungsverfahren)<\/b> at the BZSt; small business owners cannot.<\/p>\n<\/li>\n<\/ul>\n<p class=\"no-margin font-inter\">Need help? Chat with us or email support@accountable.eu, we&#8217;re happy to help.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How VAT works on EU expenses: Reverse charge, refunds, and important rules for small business owners and VAT-registered freelancers.<\/p>\n","protected":false},"featured_media":0,"template":"","help_label":[487,489],"class_list":["post-10128","help_center","type-help_center","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>VAT on EU Expenses: Refunds, Reverse Charge &amp; Rules | Accountable<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.accountable.de\/en\/help-center\/vat-on-eu-expenses-refunds-reverse-charge-2025-rules\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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