Free tool
Reverse charge invoice wording
When you sell to a business in another EU country and charge no VAT, the invoice has to say why. Choose where you are and what you sell, add the VAT numbers, and copy the text onto your invoice.
Put this on the invoice
Reverse charge — VAT to be accounted for by the customer (EU VAT Directive 2006/112/EC, Article 196) Steuerschuldnerschaft des Leistungsempfängers Seller's VAT number: [DE…] Customer's VAT number: [customer's EU VAT number] VAT: 0.00
The two notes
- Services to a business in another EU country: Reverse charge — VAT to be accounted for by the customer (EU VAT Directive 2006/112/EC, Article 196)
- Goods shipped to a business in another EU country: Intra-Community supply of goods — exempt from VAT (EU VAT Directive 2006/112/EC, Article 138)
What else the invoice needs
- Your name, address and VAT number, and the customer's name, address and EU VAT number.
- An invoice number in sequence, the invoice date and the date of the sale.
- What was sold, the quantity and the price before VAT.
- VAT shown as 0, with the note above explaining why.
- Report the sale in your EC Sales List (recapitulative statement) for the period.
"Reverse charge" in every EU language
| Country | Wording |
|---|---|
| Austria | Übergang der Steuerschuld auf den Leistungsempfänger |
| Belgium | Autoliquidation / Verlegging van heffing |
| Bulgaria | Обратно начисляване |
| Croatia | Prijenos porezne obveze |
| Cyprus | Αντίστροφη επιβάρυνση |
| Czechia | Daň odvede zákazník |
| Denmark | Omvendt betalingspligt |
| Estonia | Pöördmaksustamine |
| Finland | Käännetty verovelvollisuus |
| France | Autoliquidation |
| Germany | Steuerschuldnerschaft des Leistungsempfängers |
| Greece | Αντίστροφη επιβάρυνση |
| Hungary | Fordított adózás |
| Ireland | Reverse charge |
| Italy | Inversione contabile |
| Latvia | Nodokļa apgrieztā maksāšana |
| Lithuania | Atvirkštinis apmokestinimas |
| Luxembourg | Autoliquidation |
| Malta | Reverse charge |
| Netherlands | Btw verlegd |
| Poland | Odwrotne obciążenie |
| Portugal | Autoliquidação |
| Romania | Taxare inversă |
| Slovakia | Prenesenie daňovej povinnosti |
| Slovenia | Obrnjena davčna obveznost |
| Spain | Inversión del sujeto pasivo |
| Sweden | Omvänd betalningsskyldighet |
On Shopify
EU VAT & VIES checks a business buyer's VAT number against VIES while they shop, removes the VAT for valid cross-border orders and adds the Article 196 note to the order — on Basic, Grow and Advanced, no Plus needed. See how the reverse charge works in the app.
Questions
Goods or services — which note do I use?
For goods shipped to a business in another EU country, the sale is an exempt intra-Community supply (Article 138), and the invoice says so. For services to a business in another EU country, the general rule puts the VAT on the buyer (Article 196), and the invoice says "Reverse charge". Some services, such as those connected with land or events, follow other rules — check with your accountant.
Do I have to write it in my own language?
The EU rules require the mention "Reverse charge"; each country accepts it in its own language, and most also in English. Writing both, as the generator does, is the safe choice.
What happens if I leave the note off?
The invoice is incomplete, and a tax inspection can treat the sale as one where you should have charged VAT — which you would then owe yourself. The buyer's tax office may also question their reverse-charge entry.
By when do I issue the invoice?
For intra-Community supplies of goods and reverse-charged services, by the 15th day of the month after the sale (Article 222 of the VAT Directive).
This is general information, not tax advice. Rules differ for some services and special schemes — check with your accountant.