Innergemeinschaftliche Lieferung (Intra-community supply)
A VAT-exempt cross-border B2B sale of goods within the EU. The seller invoices net of VAT; the buyer self-assesses VAT in their home country via reverse charge. Requires valid VAT IDs and proof of cross-border transport.
An innergemeinschaftliche Lieferung (intra-community supply) is a B2B sale of goods from a VAT-registered seller in one EU member state to a VAT-registered buyer in another. The transaction is VAT-exempt for the seller; the buyer self-assesses VAT in their home country under reverse charge.
For watch dealers, this is the standard mechanism for selling to dealers in other EU countries.
Conditions for VAT exemption
All four must be satisfied:
- Both parties are VAT-registered in their respective EU countries. Each has a valid USt-IdNr. (German format) or its national equivalent.
- The goods physically cross the border from one EU country to another. The dealer must hold proof: shipping documents, courier confirmation, recipient signature (Gelangensbestätigung).
- Both VAT IDs are confirmed through the EU's VIES system. The seller checks the buyer's VAT ID before invoicing.
- The seller reports the transaction in the Zusammenfassende Meldung (recapitulative statement) submitted monthly or quarterly to the Bundeszentralamt für Steuern.
A missing element causes the exemption to fail and the seller may be liable for the VAT after the fact.
What the invoice must show
- Seller's and buyer's full legal names and addresses.
- Both VAT IDs.
- Statement: "Steuerfreie innergemeinschaftliche Lieferung gemäß § 4 Nr. 1b i.V.m. § 6a UStG" or equivalent.
- Net price (no VAT).
- Reference to the cross-border transport (shipping ID where available).
Interaction with margin scheme
A watch sold under Differenzbesteuerung cannot be sold as an intra-community supply. The two schemes are mutually exclusive. If a dealer wants to sell margin-scheme inventory to another EU dealer, the invoice remains a § 25a invoice and reverse charge does not apply. The receiving dealer treats it as a margin-scheme purchase, not an intra-community acquisition.
This is a common error: a German dealer who knows reverse charge from regular-scheme inventory tries to apply it to a margin-scheme watch. The output is an invalid invoice and the buyer (in their own audit) gets a finding.
Proof of transport (Gelangensbestätigung)
The single most-disputed element in audits is whether the goods actually left Germany. Acceptable proof:
- A shipping company's confirmation that the parcel was delivered to the buyer's address in another EU country.
- A handwritten Gelangensbestätigung signed by the buyer confirming receipt.
- Pickup by the buyer with a signed delivery acknowledgement.
Photographs of the watch being handed over are not enough on their own.
Related: reverse-charge, ausfuhrlieferung, differenzbesteuerung, e-rechnung.