- How do I create an invoice for services provided in Switzerland?
- Why are the VAT numbers missing from my e-invoice for third countries?
- What does e-invoice category O mean?
- How do I invoice services to customers outside the EU without VAT?
Tax treatment of services provided by third countriesInvoicing services provided to customers outside the EU under Category O
This guide will help you to invoice services provided to business customers outside the EU (e.g. in Switzerland) correctly. In accordance with Section 3a(2) of the German Value Added Tax Act (UStG), such services are taxable at the customer’s place of business and are regarded as non-taxable in Germany. The aim is to issue an e-invoice in accordance with the EN 16931 standard (Category O).
Invoices in Category O are subject to strict requirements to ensure compliance. No VAT registration numbers may appear on the invoice. Instead, the seller is identified by their registration number. Furthermore, services must be invoiced separately from goods, as mixed invoices are not permitted in this category.
How to correctly invoice services in a third country using e-invoicingEin Leitfaden für den Export in die Schweiz und andere Nicht-EU-Staaten.
Cross-border services require precise invoicing. When you provide services to customers outside the EU, a standard invoice becomes a highly specialised document that does not require VAT numbers but must include precise legal information.
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Create an invoice with a service item for customers in third countries
Create a new invoice for a company in a third country, such as Switzerland. Ensure that the invoice type is marked as ‘E-invoice enabled’ under Display options in the editor. Add only a service item. The tax matrix must contain a corresponding row for the country so that the item is automatically assigned 0% VAT.
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Publish an invoice and check the rules for e-invoicing
Click on ‘Publish’ to start the validation process for Category O (Not taxable in Germany). The e-invoice is generated without VAT IDs (neither yours nor the customer’s). Instead, your registration number from System Data -> Advanced Company Data is used as the identification detail. Possible errors include:
- The registration number is missing from the system data.
- The invoice contains mixed tax categories (e.g. additional goods).
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Check the invoice PDF and legal notices
Open the final invoice PDF to check it. The document must contain the note ‘Service not subject to tax in Germany’. This text is generated automatically if the criteria for Category O are met. The embedded XML file correctly reports the items as Category O in accordance with the EN 16931 standard.
Compliance requirements for Category OImportant information regarding invoicing
Separate goods and services: In accordance with the EN 16931 standard, mixing tax category O (non-taxable supply) with other categories is prohibited. If you invoice both physical goods and services to customers in a third country, you must issue separate invoices for these.
Maintain your registration number: Ensure that your registration number is stored in the system data under ‘Advanced company details ’. For supplies in category O, this number serves as the primary identifier and replaces the seller’s VAT number.
XRechnung feature: For recipients with a routing ID, a rate of 0% is technically displayed in the tax summary of the XML file. This is a requirement of the XRechnung profile for correct validation, even if the individual invoice items themselves do not carry a tax rate.