Reverse Charge VAT in the EU: When to Invoice Without VAT

This guide is general information, not tax advice. Rules differ in detail between countries; ask your tax adviser for your case.

How it works

For most B2B supplies between two EU countries, the seller does not charge VAT. The buyer declares the VAT in their own return (and usually deducts it at the same time). This is the reverse charge.

Situation	VAT on the invoice
B2B, goods shipped to another EU country	0% (intra-Community supply)
B2B, services to a business in another EU country	0%, reverse charge (general rule)
B2C, goods or digital services to another EU country	VAT of the customer’s country (OSS) above €10,000 a year
Domestic sale	Your own country’s VAT

Your duty: check the VAT number

The reverse charge only applies if your customer is a VAT-registered business. The usual proof is a valid VAT number checked in VIES at the time of the supply.

Ask for the VAT number when the customer orders or signs up.
Validate it: format, check digit and VIES registration. Compare the returned name with the customer’s details.
Store the result with date and time (or the VIES consultation number).
Re-check regularly for repeat customers; registrations can end.

Checking many customers? Use the bulk VAT validator or the API in your checkout.

What goes on the invoice

Your VAT number and your customer’s VAT number
Net amount, no VAT charged
A note such as “Reverse charge”
Report the sale in your EC Sales List (recapitulative statement)

Frequently asked questions

What do I write on a reverse charge invoice?

Your VAT number, your customer's VAT number, no VAT amount, and the note “Reverse charge” (many countries also accept a reference to Article 196 of the VAT Directive for services, or the intra-Community supply exemption for goods).

What happens if the customer's VAT number is invalid?

The reverse charge does not apply and you would have had to charge your own VAT. Tax authorities can claim the missing VAT from you, so check the number before invoicing and keep the result.

Does the reverse charge apply to consumers?

No. For B2C sales you charge VAT, usually at the customer's country rate for distance sales of goods and digital services (reported through the One-Stop Shop, OSS).

Validate VAT numbers in your app

vatcheckapi checks the format and checksum of EU and UK VAT numbers and confirms the registration with VIES and HMRC, with company name and address where the country provides them.

150 free validations every month. No credit card required.

{ "country_code": "LU", "vat_number": "26375245", "format_valid": true, "checksum_valid": true, "registration_info": { "is_registered": true, "name": "AMAZON EUROPE CORE S.A R.L.", "address": "38, AVENUE JOHN F. KENNEDY\nL-1855 LUXEMBOURG", "checked_at": "2023-01-11T12:30:28.000000Z" } }

Reverse charge VAT explained