The reverse charge procedure, also known as reversal of tax liability, is a special provision in VAT law, which applies in particular in cross-border transactions. It is governed by the German VAT Act (§ 13b UStG).

If a company located abroad provides a service to a company in Germany, the recipient accepts the sales tax liability of the supplier and declares it in his/her advance VAT return and VAT return (reverse charge). The foreign business issues a net invoice and the VAT is declared by the recipient as part of the advance VAT return. This VAT can then be deducted as input tax (see also Empfängerortprinzip/Place of supply principle).

Source: touring artists VAT