Reverse Charge VAT Invoice
What to include and how to word it correctly
When the reverse charge VAT mechanism applies, the supplier issues an invoice without charging VAT. The buyer then self-assesses VAT in their own country. Getting the invoice wording right is important: an incorrect reverse charge invoice can cause problems for both parties during audits.
Required information on the invoice
The minimum required information on a reverse charge invoice is similar to a regular B2B invoice, but you must include a clear reference to the reverse charge mechanism and both parties VAT numbers.
| Field | Required? | Notes |
|---|---|---|
|
Reverse charge reference |
Yes |
See wording below |
|
Your company name and address |
Yes |
Full legal name and registered address |
|
Your VAT number |
Yes |
Must be a valid EU VAT number |
|
Customer company name and address |
Yes |
As registered with their tax authority |
|
Customer VAT number |
Yes |
Must be validated before invoicing |
|
Invoice number |
Yes |
Sequential, unique identifier |
|
Invoice date |
Yes |
Date the invoice is issued |
|
Net amount (excluding VAT) |
Yes |
This is what the customer pays |
|
VAT rate and amount |
No |
Show 0% or omit. Do not charge VAT. |
Reverse Charge Wording
Your invoice must clearly state that the reverse charge applies. The exact wording varies by country, but any of the following are generally accepted:
- "Reverse charge" (sufficient in most EU countries)
- "Reverse charge - Article 196, VAT Directive 2006/112/EC" (includes the legal basis)
- "VAT reverse charge applies. VAT to be accounted for by the recipient."
- "Taxable amount - reverse charge. VAT due by the recipient under Article 196 of Directive 2006/112/EC."
The reference to Article 196 is not always mandatory, but including it makes your invoice unambiguous and easier for your customer's accountant to process.
Article 196 covers cross-border B2B services where the supplier is in a different EU country. This is the most common case for professional services. Examples include consulting, marketing, design and creative services, software subscriptions (SaaS), digital services and more.
What NOT to Do
- Do not show a VAT amount as payable or include any VAT rates. The whole point of reverse charge is that the buyer handles VAT. If you charge VAT on a reverse charge invoice, your customer may have problems reclaiming it.
- Do not omit the customer's VAT number. Without it, you cannot justify applying reverse charge. Always validate the VAT number before issuing the invoice.
Record Keeping
Keep a copy of every reverse charge invoice along with proof that you validated the customer's VAT number at the time of the transaction. Tax authorities may request this evidence during an audit.
The VatDB API returns an audit_id with every validation. Use it to retrieve a full
audit record at any time, including the timestamp and validation result.
This gives you permanent proof that the VAT number was valid when you issued the invoice.
Example Invoice Structure
| From: Your Company Name | Invoice #: INV-2026-0042 |
| Your Address | Date: 10 March 2026 |
| VAT: DE123456789 | Supply date: 1-28 February 2026 |
| To: Customer Company Name | |
| Customer Address | |
| VAT: FR12345678901 |
| Description | Amount |
|---|---|
| Marketing services | 500.00 |
| VAT (0% - reverse charge) | 0.00 |
| Total due | 500.00 |
Reverse charge - Article 196, VAT Directive 2006/112/EC. VAT to be accounted for by the recipient.
Frequently Asked Questions
Do I need to show 0% VAT on the invoice?
It depends on the country. Some require you to show a 0% VAT line, others expect you to omit the VAT line entirely and only show the net amount. Including a 0% line is generally safe in either case.
What if I accidentally charge VAT on a reverse charge invoice?
Issue a credit note correcting the original invoice and reissue without VAT. Your customer may not be able to reclaim incorrectly charged VAT in your country, so fix it promptly.
Does my customer need to do anything with this invoice?
Yes. The buyer must report the VAT on their VAT return as both output tax (VAT due) and input tax (VAT deductible). If they are entitled to full recovery, the net effect is zero.
Validate VAT Numbers Before Invoicing
Every reverse charge invoice needs a verified customer VAT number. Automate validation with the VatDB API.
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