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.
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.
The wording requirement comes from Article 226 of the EU VAT Directive (2006/112/EC), which lists what an invoice must show — including an explicit reference where the customer is liable for the tax.
Check it against the source
Rules differ by country and change, so verify against the official guidance rather than any summary — this one included:
- European Commission — VAT rules and rates
- VIES — check whether your customer's VAT number is valid
- HMRC — domestic reverse charge (UK construction services)
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.