This term is used in VAT law. If services are supplied by an Austrian business (B2B – business to business) across national borders, they are deemed to have been supplied at the place where the recipient operates his or her business (place-of-supply principle) under the general clause. 

In such a case, the Austrian VAT Act does not apply, Austrian VAT is not charged, but the Reverse Charge Method (transfer of tax liability) is applied, according to which liability for the payment of VAT is transferred to the foreign business partner.