The reverse charge shifts responsibility for VAT from the seller to the buyer. On certain cross-border business-to-business sales, you don't charge VAT — your customer accounts for it in their own return instead.
This is a general overview, not tax advice. Rules differ by country and change over time — check your local guidance or an accountant for your specific situation.
When it typically applies
A common case is selling services to a VAT-registered business in another EU country. Rather than charging your local VAT, you apply the reverse charge and the customer handles the VAT at their end.
What to put on the invoice
- Both parties' VAT numbers.
- No VAT amount charged (0), with the net total.
- A note such as “Reverse charge: customer to account for VAT” or the applicable legal reference.
Make it easy
Invoice Forever includes ready-made legal notes for cases like intra-Community supply and reverse charge, so you can add the right wording with a click. See the VAT invoice template to get started.