When does the reverse charge system apply?

The tax liability is shifted to the recipient of the supply if

• the entrepreneur making the supply has neither his residence (registered office) nor his habitual abode nor a fixed establishment in Austria,
• the recipient of the supply is an entrepreneur or a public legal entity, and
• either a supply of services (except the toleration of the use of toll roads for consideration) is made or a supply of contract work which is taxable as a supply of goods.
  

The entrepreneur making the supply is liable for payment of tax.

Also in the case of construction services within the meaning of the tax liability is shifted to the recipient of the supply.

According to this provision construction services include all services associated with the

• production
• improvement
• maintenance and repair
• alteration or destruction of buildings as well as
• the hiring-out of labour if the hired-out workers render construction services on behalf of the hiree.

In the case of construction services mentioned above the tax liability is shifted to the recipient of the supply if either

• an entrepreneur renders the construction services to an entrepreneur who himself is tasked to provide such construction services or
• an entrepreneur renders construction services to an entrepreneur who himself usually renders construction services.

In the case of supply of gas via the natural gas distribution network or electricity the tax liability is shifted to the recipient of the supply if

• the recipient of the supply of goods is registered for purposes of VAT,
• the place of supply of goods is situated according to the special rule for gas via the natural gas distribution network or electricity, and
• the entrepreneur making the supply of goods has neither his residence (registered office) nor his habitual abode nor a fixed establishment.