Reverse charge VAT means that the customer, not the seller, accounts for the VAT on a sale. In the EU it is the general rule when a business supplies services to a business customer in another member state: the seller invoices the net amount with the words “Reverse charge”, and the customer declares the VAT in its own return and usually deducts it in the same return. Goods shipped B2B to another member state follow a similar logic (a VAT-free supply for the seller, a taxable acquisition for the customer). Both depend on one condition: the customer must be a VAT-registered business, which in practice means a VAT number that you have checked.
General information, not tax advice. Member states differ in detail; ask your tax adviser about your case.
1. How the reverse charge works
An Austrian consultancy invoices €10,000 for consulting to a company in Germany:
| Step | Seller (Austria) | Customer (Germany) |
|---|---|---|
| Invoice | €10,000 net, no VAT, “Reverse charge”, both VAT numbers | Receives an invoice without VAT |
| VAT return | Reports the €10,000 as a supply to another member state | Declares 19% German VAT: €1,900 |
| Deduction | Nothing to pay on this sale | Deducts the €1,900 as input VAT, if entitled to |
| Recapitulative statement | Lists the customer’s VAT number and €10,000 | – |
| Net VAT effect | €0 | €0 for a business with full deduction |
The tax is still collected, but in the country where the customer is established and by the party that is registered there. That is why the seller does not need a VAT registration in every customer’s country.
2. When the reverse charge applies
| Situation | VAT on the invoice | Legal basis |
|---|---|---|
| B2B services to a business in another EU country (general rule) | None, “Reverse charge” | Articles 44 and 196 of the VAT Directive |
| B2B goods shipped to a business in another EU country | None, reference to the exemption; the customer declares an intra-Community acquisition | Article 138 |
| B2B services with their own place-of-supply rules: immovable property, passenger transport, admission to events, restaurant and catering, short-term hire of means of transport | Depends on where the service is taxed; check that country’s rules | Articles 47, 48, 53, 55 and 56 |
| B2C goods and telecom, broadcasting and electronic services to consumers in other EU countries | The customer’s country’s VAT once these sales exceed €10,000 a year EU-wide (One-Stop Shop) | Articles 33, 58, 59c |
| Other B2C services | Generally your own country’s VAT | Article 45 |
| Domestic sales | Your own country’s VAT; some countries apply a domestic reverse charge to sectors such as construction or scrap metal | Articles 199 and 199a |
Rates by country are on the EU VAT rates page.
3. Check the customer’s VAT number first
The reverse charge depends on the customer’s status, and the EU rules tie that status to the VAT number:
- Services: Article 18 of Implementing Regulation (EU) No 282/2011 lets you regard a customer as a business when it has given you its VAT number and you have obtained confirmation of its validity and of the associated name and address, unless you have information to the contrary.
- Goods: since 1 January 2020, Article 138 makes the customer’s VAT number from another member state a condition of the exemption. Without it, the Commission’s explanatory notes on the 2020 quick fixes say the supplier has to charge VAT.
A practical routine:
- Ask for the VAT number when the customer orders or signs up, with the country prefix.
- Check the format and check digit in your form, so typos show up at once (VAT number formats).
- Check the registration in VIES, and compare the returned name and address with the customer’s details. How VIES answers and fails is explained in VIES VAT validation.
- Store the result with date and time, and the VIES consultation number you get when you send your own VAT number as the requester.
- Check again for repeat customers, for example before large orders: registrations end.
With vatcheckapi, one request runs steps 2 to 4:
curl -G https://api.vatcheckapi.com/v2/check \
-d vat_number=LU26375245 \
-d requester_vat_number=ATU78304602 \
-H "apikey: $VATCHECKAPI_KEY"
{
"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",
"address_parts": null,
"consultation_number": "WAPIAAAAZ3x9Q1bk",
"checked_at": "2026-10-17T09:30:00.000000Z"
},
"registration_info_history": []
}
Keep is_registered, name, address, consultation_number and checked_at with the invoice. The Validate VAT Number documentation describes every field, and validate VAT numbers in code shows the call in JavaScript, Python and PHP. For a single number, use the free VAT number validator; for a customer list, the bulk VAT validator.
If the number is invalid, charge VAT or hold the invoice until the customer gives you a valid number. If VIES is down, the answer is neither valid nor invalid: retry later and keep the failed attempt with its time.
4. What goes on a reverse charge invoice
Besides the usual contents of a full invoice (date, sequential number, both parties’ names and addresses, description, quantity, unit price), Article 226 of the VAT Directive requires:
- Your VAT number (point 3) and your customer’s VAT number (point 4).
- The net amount, with no VAT charged.
- The words “Reverse charge” when the customer is liable for the VAT (point 11a).
- For VAT-free goods to another member state: a reference to the exemption (point 11), such as the article of the VAT Directive or your national law.
Consulting services, October 2026 EUR 10,000.00
VAT EUR 0.00
Total EUR 10,000.00
Supplier VAT number: ATU12345678
Customer VAT number: DE123456789
Reverse charge
Issue it by the 15th day of the month after the supply (Article 222). Some countries add their own wording or language requirements.
5. Report the sale
- Recapitulative statement (EC Sales List): list each business customer in another member state with its VAT number and the total value of goods supplied VAT-free and of reverse-charge services (Article 262). It is filed monthly or quarterly, depending on your country and volume. The VIES FAQ is clear that the customer numbers in it must be correct.
- For goods, a missing or incorrect statement can cost you the exemption unless you can justify the error to your tax authority (Article 138(1a)).
- Your VAT return: report the supply in the box for intra-EU supplies or services.
- The customer declares the VAT in its own return.
6. Keep proof
Keep for each reverse charge sale:
- the VAT number check: result, date and time, and the consultation number if you have one,
- the invoice with both VAT numbers and the reverse charge note,
- for goods, the transport documents showing that the goods left your country,
- the contract or order showing that you supplied a business.
VIES itself points out that confirming a VAT number is “only ONE of the elements of evidence” for a VAT-free intra-EU supply or for not charging VAT on a service. National retention periods apply.
7. What changes with VAT in the Digital Age
The EU adopted the VAT in the Digital Age (ViDA) package on 11 March 2025 (Directive (EU) 2025/516). For the reverse charge, two dates matter, according to the European Commission:
- 1 July 2028: a mandatory reverse charge for suppliers that are not identified for VAT in the member state of supply, as part of the single VAT registration.
- 1 July 2030: digital reporting requirements for cross-border B2B transactions, based on e-invoices.
Until then, the rules above apply. Checking the VAT number stays the first step either way.