Germany is Austria’s most important trading partner. In 2025, total trade volume between the two countries reached approximately €119.4 billion. In the same year, Austria exported goods worth €56.1 billion to Germany, accounting for nearly one-third of its total exports.

A common question for those engaged in this trading relationship is when Austrian businesses can receive net invoices. In practice, this often raises more questions: does German or Austrian law apply? What’s the difference between invoices issued to private individuals and those issued to businesses? And when can invoices be sent to Austrian businesses exclusive of value-added tax (VAT)?

This article explains the basic principles of invoicing in Austria and which national law applies when. We’ll go into detail about the differences between business-to-business (B2B) and business-to-consumer (B2C) invoices in the EU. You’ll also get an overview of the necessary mandatory information, typical sources of errors, and practical tips for invoicing Austrian businesses.

Key takeaways

• Invoices issued to Austria are first and foremost subject to the EU’s harmonized VAT principles.
  
• Whether an invoice indicates VAT depends primarily on the type of revenue, the recipient’s status, and the place of supply.
  
• Intracommunity supplies and many B2B services can be billed exclusive of German VAT, subject to certain conditions.
  
• Suppliers of B2C goods and services generally remain liable for VAT.
  
• Digital invoicing processes can help you consistently capture mandatory information, monitor deadlines, and manage cross-border processes more efficiently.
  

Basic principles for invoicing Austria

Under VAT law, Austria is part of the European Union’s customs union. Section 6a of the German VAT Act (UStG) therefore classifies supplies of goods between German and Austrian businesses, as well as among such businesses and those in other EU member states, as intracommunity supplies. But this classification is subject to certain conditions. In many cases, supplies of services between EU businesses constitute intracommunity services. These types of transactions are subject to unified VAT regulations.

Supplies of goods or services to businesses in third countries, i.e., countries outside the EU, work differently. For German businesses, there’s a big difference in VAT regulations and the specific invoicing process between sending an invoice to, say, Switzerland vs. Brazil.

Do German and Austrian regulations on invoicing differ?

Germany and Austria are part of the EU’s common VAT system, based on the VAT Directive 2006/112/EG. Both countries implement the directive through their national VAT legislation.

In terms of invoicing, this means that cross-border supplies across the EU are, in principle, subject to harmonized VAT regulations. These principles determine when a supply qualifies as an intracommunity supply, when a business performs an intracommunity service, and in which country businesses must report these supplies for tax purposes.

As a result, unified regulations govern the basic VAT framework and the mandatory details that invoices must include. National laws vary in certain respects, such as formal or documentation requirements.

How does B2B invoicing within the EU work?

For VAT purposes, invoicing between businesses within the EU follows clear basic principles. The key is whether a business is supplying goods or services. Each of these supplies is subject to special regulations that differ significantly from transactions conducted domestically.

Intracommunity supplies

If a German business supplies goods to a business in another EU member state, the supply might be exempt from German VAT, subject to certain conditions. Such a transaction constitutes an intracommunity supply.

However, an intracommunity supply requires that both businesses have a valid VAT identification number (VAT ID) and that the goods actually enter another EU state, e.g., Austria. If properly demonstrated, the supplier can send the invoice without indicating VAT. The German business, accordingly, issues a net invoice to its Austrian customer.

Intracommunity services

Businesses within the EU often supply services under intracommunity service arrangements. These supplies are generally also invoiced exclusive of German VAT. Instead, the so-called reverse charge procedure applies. This process reverses the tax liability to the buyer who reports and remits VAT in their country. As with intracommunity supplies of goods, this requires that both parties act as businesses and have valid VAT IDs. A business in Germany that performs a service for a business in Austria and issues a corresponding invoice also falls under this definition.

How does B2C invoicing within the EU work?

In principle, the reverse charge procedure does not apply to B2C transactions. Instead, the seller is responsible for correctly calculating and remitting VAT.

Supplies of goods to private individuals

When a German business sells goods to private individuals in other EU member states, this is considered an intracommunity distance sale. Unlike in the B2B sector, tax-exempt intracommunity supplies do not apply here.

Eligible businesses can tax these sales in the state where they are registered, provided their sales do not exceed the EU-wide cap of €10,000 for cross-border B2C distance sales in the current and preceding calendar year. If sales go over this limit, the place of supply shifts to the member state where the shipment ends, and the VAT applicable in that state applies.

Businesses can simplify their workflow here by using the so-called One Stop Shop (OSS) scheme to report and remit overseas VAT in a single place.

Performing services for private individuals

According to Section 3a.1 of the UStG, services for private individuals are, in principle, performed at the seller’s place of headquarters. In many cases, for that reason, German businesses invoice their services inclusive of German VAT.

However, there is a long list of exemptions, for example, for digital, telecommunications, or broadcasting services. In these cases, taxation applies where the private individual resides. The OSS scheme can also help fulfill tax obligations in other EU member states.

What are the invoice requirements for Austria?

Invoices sent within the EU are, for the most part, subject to a standard set of minimum requirements. Businesses in Germany that issue invoices to Austria can refer to either Section 14 of the UStG or its Austrian counterpart, Section 11 of the Austrian VAT Act 1994, for details on the information requirements. The Austrian Economic Chambers also provides detailed guidance on invoicing.

General information requirements

Regardless of whether a German business issues an invoice to another business or to a private individual in Austria, the invoice must contain certain basic details. In particular, this includes the following:

• Full name and address of the company supplying the goods or service
  
• Full name and address of the buyer
  
• A sequential, unique invoice number
  
• Issue date of the invoice
  
• Date of delivery or other service (performance period), unless this is the same as the issue date
  
• Tax or VAT ID number of the company supplying the goods or service
  
• Description and quantity of the goods or services supplied
  
• Fee, applicable tax rate, and tax amount, or a clear note that the supply is exempt from tax
  

This information serves as the basis for any compliant invoice in an EU context.

Additional information for B2B invoices

Cross-border supplies of goods and services made to businesses within the EU are subject to additional information requirements—especially if an invoice is being sent exclusively of German VAT. The extra details includes:

• VAT ID of both businesses involved
  
• Clear note (in German) regarding tax, e.g.:
  
  • “steuerfreie innergemeinschaftliche Lieferung” (tax-free intracommunity supply)
    
  • or “Steuerschuldnerschaft des Leistungsempfängers” (reverse charge applies)
    

Such notes matter because they clarify and unambiguously define the tax classification of the supply in question.

Common mistakes when invoicing Austria

There are a few common mistakes that frequently occur when German businesses issue invoices to Austria. Since these errors can lead to various tax risks, it’s worth understanding the statutory requirements in detail and implementing them carefully.

Incorrect VAT treatment

For businesses in Germany, correct VAT treatment is the most central aspect of issuing invoices to Austria. That’s because they might indicate VAT on an invoice while making a tax-exempt intracommunity supply, or issue a net invoice when they are not eligible to do so. Businesses must accordingly always check if the type and place of supply, customer status, and documentation align properly. Otherwise, they risk tax issues or retroactive corrections.

Incorrect or missing VAT ID

Invoices for cross-border B2B supplies of goods or services within the EU must always indicate the VAT IDs of both businesses. If this information is missing or the indicated number is invalid, tax authorities might not recognize the supply as tax-exempt.

No reference to the reverse charge procedure

If the reverse charge procedure applies, the invoice must clearly indicate this. Invoices that do not contain a corresponding note, such as “Recipient is liable for tax” or “Reverse charge applies,” are considered formally incomplete and could be rejected by tax authorities.

Incomplete or incorrect mandatory information

Classic formal errors are also common, e.g., missing invoice numbers, vague service descriptions, or implausible figures. These inaccuracies can cause an invoice to fail to meet the statutory requirements.

Inadequate evidence and no documentation

When making intracommunity supplies of goods, businesses must be able to prove that the goods have in fact entered another EU member state. They can do this using delivery notes, freight documents, or shipping confirmations, for example. If they do not have this documentation, the supply might not qualify as tax-exempt and could become subject to VAT retroactively.

How Stripe can help you with invoicing

Invoicing to Austria can be challenging for German businesses for several reasons. If you occasionally issue cross-border invoices, then you might not have the routine necessary to ensure all special VAT rules are factored in. On the other hand, the challenge for businesses with a high volume of invoices is avoiding careless mistakes. Digital solutions such as Stripe Invoicing can help structure workflows and ensure consistent invoicing quality.

With Invoicing, you can generate, adjust, and send compliant invoices efficiently. Tax rates and notes on tax exemptions are integrated correctly for error-free invoices—whether domestic or cross-border, B2C or B2B, or for supplies of goods or services. Invoicing monitors invoice status and notifies you when they are due. The system can automatically send payment reminders or dunning letters.

These features support professional, consistent billing workflows while improving liquidity by speeding up the collection of outstanding receivables. Ultimately, Invoicing significantly reduces manual work, freeing up time and financial resources.

FAQs

Below are answers to the most important questions about cross-border invoicing for businesses in Germany.