Tax & Law
Intra-Community Supply
Definition
An intra-community supply is the delivery of goods from one EU member state to another where both the supplier and the acquirer are VAT-registered. The supply is tax-exempt in the country of origin (§ 4 No. 1b UStG) and subject to acquisition tax in the destination country. On electronic invoices, VAT category code K (BT-151) is used.
Switch to German:Innergemeinschaftliche Lieferung (DE)
Related terms
VAT (Value Added Tax)VAT (Value Added Tax), known in German as Umsatzsteuer (USt) or Mehrwertsteuer (MwSt), is a consumption tax on supplies of goods and services. In Germany the standard rate is 19% and the reduced rate is 7%. Electronic invoices under EN 16931 must state the VAT amount (BT-110), tax rate (BT-152), and taxable base amount (BT-116) for each tax breakdown.VAT Identification Number (VAT ID)The VAT Identification Number (VAT ID) is an EU-wide unique identifier for VAT-registered businesses. In Germany it begins with the country code 'DE' followed by 9 digits (e.g., DE123456789). On electronic invoices, the seller's VAT ID is stated in BT-31 and the buyer's in BT-48. It is essential for evidencing cross-border tax-exempt supplies.Reverse ChargeUnder the reverse charge mechanism, the VAT liability is shifted from the supplier to the recipient of the supply. In Germany it applies to, among other things, certain construction services, metal supplies, and all cross-border B2B services within the EU. On electronic invoices, the VAT category code AE (BT-151) must be used, and a reference to the legal basis (e.g., § 13b UStG) should appear in the invoice text.VAT Category Code (BT-151)The VAT Category Code (BT-151) classifies the type of VAT applied to an invoice line. The permitted values come from UNTDID code list 5305 and include S (Standard rate), Z (Zero rate), E (Exempt), AE (Reverse charge), K (Intra-community supply), G (Export), and O (Outside scope of VAT). Correct usage is essential for tax compliance.