Reverse charge is a tax procedure in which the VAT liability shifts from the service provider to the business recipient. It regularly applies to cross-border B2B ticket sales within the EU and must be correctly indicated on the invoice.
Legal basis (DE): § 13b UStG
EU basis: VAT Directive Art. 196
Requirement: Valid VAT ID of the recipient
What does reverse charge mean?
With the reverse charge procedure the VAT liability is reversed: the seller (organizer) does not pay the VAT; instead, the commercial buyer pays it in their own country. The invoice does not show any tax amount, but instead includes a mandatory reference to the reverse charge mechanism. The buyer accounts for the VAT themselves but can deduct it as input tax in the same transaction – making the procedure generally economically neutral for them.
This procedure is a key component of payment management for international events.
When does reverse charge apply to conference tickets?
The situation for event tickets is more complex than for standard services. Section 3a of the German VAT Act (UStG) is the decisive factor (all information provided here is for informational purposes only and does not constitute legal advice. For binding advice, please consult a tax advisor):
- Event in Germany, buyer is an EU business customer: For pure "admission to events," the place-of-supply principle applies according to Section 3a (3) no. 5 UStG – the organizer charges German VAT; reverse charge does not apply.
- Other services related to the event (e.g., consulting services, sponsorship packages, exhibition booths, virtual participation in online events) are subject to the place of supply rules under Section 3a (2) of the German Value Added Tax Act (UStG) – the reverse-charge mechanism applies here for B2B buyers within the EU.
- B2C buyers: Reverse-charge does not apply; the organizer must remit VAT in the respective country (if applicable, via the OSS procedure).
Practical tip: The distinction between "admission" and "virtual participation" has been harmonized across the EU as of 2025 – please seek professional tax advice.
Mandatory invoice details
Reverse-charge invoices must include the following information:
- VAT ID number of both the organizer and the buyer
- Note: "Reverse charge" (or an accepted translation in the language of the invoice)
- No VAT shown – only the net amount is stated
- Reference to the relevant regulation (e.g., Art. 196 of the EU VAT Directive)
Common pitfalls
- Invalid VAT ID of the buyer is not verified → tax arrears for the organizer
- Incorrect application to B2C buyers (reverse-charge only applies to B2B)
- Missing mandatory note on the invoice → formal objection
- Online events are treated the same as in-person events (or vice versa) – the place of taxation may differ
Best Practices
- Automatically verify VAT IDs for every B2B booking using the VIES system (EU). Converia already offers an integrated feature for this.
- Ensure your booking system, like Converia, clearly distinguishes between B2B and B2C (mandatory VAT ID field).
- Regularly review tax logic with your tax advisor – rules are subject to change.
- Maintain mandatory legal notices in your invoice templates for each language.
- Archive documentation of your plausibility checks (the burden of proof lies with the event organizer).
Reverse Charge in Converia
During the booking process, Converia automatically verifies the VAT IDs of business customers, determines the correct tax treatment for each country, and issues reverse-charge-compliant invoices with all mandatory information – with no manual accounting follow-up required.
Legally compliant billing for international B2B ticket sales
With Converia, you automatically issue correct invoices for every type of buyer – including reverse charge for EU business customers.
- Payment Management – Ticketing & Registration
- Ticketing System – Ticketing & Registration
- Event Registration – Ticketing & Registration
Automatic VAT ID verification and accurate invoicing for every buyer type.