Reverse Charge
A distinction has to be made when it comes to invoices, whether the BGV (balance responsible party) has its business premises in Austria or abroad. This information is relevant with respect to VAT regarding the selling or buying of balancing energy.
The following case constellations are possible when it comes to selling or buying of balancing energy depending on the location of the premises.
- AGCS delivers balance energy to a BGV (balance responsible party):
- Premises in Austria: Invoicing is done with VAT.
- Premises not in Austria: Pursuant to § 3 Abs. 13 UStG (taxation law in Austria) delivery is carried out where the premises of the recipient are located.
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BGV (balance responsible party) delivers and AGCS receives balancing energy:
In this case the BGV invoices and AGCS issues a credit note. In general pursuant to § 3 Abs. 13 UStG (taxation law in Austria) the turnover is qualified in Austria because AGCS has its premises in Austria. Further-more, this turnover is also taxable in Austria, because there is no exemption from taxation.
- Premises in Austria: If the premises of the BGV (balance responsible party) are in Austria, it then issues invoices including VAT and AGCS issues credit notes including VAT – in this case the BGV may apply input tax deduction.
- Premises not in Austria: If there are no premises of the BGV (balance responsible party) in Austria the Reverse Charge is consequently applicable pursuant to § 19 Abs. 1c UStG (taxation law in Austria) as the location of delivery pursuant to § 3 Abs. 13 UStG (taxation law in Austria) is located in Austria and the BGV (being the deliverer) does not have its premises in Austria. In this case the VAT is owed by AGCS (recipient of delivery), as AGCS is registered in Austria in terms of VAT taxation.
In order to be able to issue invoices correctly with respect to delivery and purchase of balancing energy it is necessary for AGCS to know whether the corresponding BGV has its premises in Austria or abroad. Therefore the completely filled in and duly signed form G is to be submitted to AGCS in terms of every new registration of a market participant (BGV, supplier, balancing energy provider).
In addition to that every newly registered market participant (BGV, supplier, balancing energy provider) which establishes its premises in Austria or closes down its premises it is obliged to immediately report this to AGCS via the completely filled in and duly signed form G.