VAT reverse charge checker for construction
Tells you whether a construction invoice shows VAT or moves it to the customer under §13b UStG in Germany or autoliquidation in France, and what the invoice must say.
Reverse charge check for a construction invoice
Set the figures for one invoice and the answer below follows in the wording that belongs on the document.
Who owes the VAT on this invoice
The customer owes the VAT under §13b UStG
- The invoice covers work on a building, the case described in §13b Abs. 2 Nr. 4 UStG.
- The customer supplies construction work himself, which is what §13b Abs. 5 UStG turns on.
- Net amount of the work€24,000.00
- VAT shown on the invoice€0.00
- Declared by the customer at 19 %, deducted again as input tax where the right is complete€4,560.00
- Amount the customer pays€24,000.00
- Wording the invoice must carry: Steuerschuldnerschaft des Leistungsempfängers.
- No deduction: the exemption certificate under §48b EStG is on file.
This check is a decision aid, not tax advice, and a doubtful case belongs with an adviser before the invoice goes out.
The rule behind §13b UStG and article 283-2 nonies
Written out: construction work on a building, invoiced to a customer who supplies construction work himself in Germany, or to the main contractor by its subcontractor in France, carries no VAT. The invoice total then equals the net amount, while the customer declares the net amount multiplied by the rate and deducts the same figure where his right to deduct is complete. Fail either condition and the supplier charges that product and collects the net amount plus the tax.
The German deduction is separate arithmetic on the same document. 15 % of the consideration, meaning the net amount plus any VAT shown, goes to the Finanzamt unless the supplier presents an exemption certificate under §48b EStG, or the payments to him stay under 5,000 EUR in the calendar year. What reaches his account is the consideration less that deduction.
Questions about VAT reverse charge checker for construction
Does the United States have a construction reverse charge?
No. There is no value added tax at federal level at all. Construction is taxed through state sales and use tax, where the common pattern is that the contractor pays tax on materials at purchase while the improvement invoice carries none. Rates and treatment are set state by state.
What has to be written on a reverse charge invoice?
A German document carries the words Steuerschuldnerschaft des Leistungsempfängers and no tax line, under §14a Abs. 5 UStG. A French subcontractor writes Autoliquidation with article 283-2 nonies of the CGI beside the amount excluding tax. Both show the VAT numbers of supplier and customer.
Who decides whether the customer supplies construction work?
The German tax office does, by issuing the certificate USt 1 TG, which is valid for up to three years and binds both sides. Without it the supplier relies on written confirmation of the 10 % turnover test. A developer who only sells finished land is not covered.
Use the calculation with your own project data
Request a trial period and tell us which workflow you want to test. We prepare Home Builder Software around that part of your work without fixing a term before we know the scope.