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EU, abroad & reverse charge · 5.3

How do I invoice customers outside the EU?

Short answer

Services provided to businesses outside the EU are generally not taxable in Germany. Your invoice will therefore not include German Umsatzsteuer (VAT). However, you must be able to prove that your customer is a business.

Key points

  • Business customers: The place of supply is the customer's country. German VAT does not apply.
  • Proof: for example, a commercial register excerpt, the customer's tax number, or a certificate from their local tax authority. Keep this on file.
  • Note on the invoice: for instance, "Service not taxable in Germany" ("Nicht im Inland steuerbare Leistung"). This is recommended, even if not strictly mandatory.
  • Private customers: For many digital services and consulting, the customer's country also applies. Check whether you have a tax liability there, for example in the UK.
  • Local rules may apply in your customer's country, such as withholding taxes.

You still report these sales in your advance VAT return (Umsatzsteuer-Voranmeldung) as non-taxable transactions.

Legal basis

§ 3a Abs. 2 und 4 UStG§ 18 UStG

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With Pluto

Pluto creates invoices for customers outside the EU without VAT and with the appropriate reference note.

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