A reverse-charge invoice is a document used to request payment while meeting the tax rules that apply to this type of billing. Getting it right protects both you and your client, keeps the books clean, and avoids disputes over what was agreed.
Every valid reverse-charge invoice should include the following mandatory details: 1. your VAT number 2. customer VAT number 3. the exact phrase “reverse charge” 4. 0% VAT shown per line 5. place of supply noted. Missing any of these can make the document harder to enforce or, where tax is involved, invalid for VAT purposes.
Tax treatment: Used for B2B supplies between EU countries. You charge 0% and write “Reverse charge — VAT payable by the customer” plus both VAT numbers. The customer accounts for the tax in their country. The rate applied here is 0%. When you bill business customers in another country, check whether the reverse-charge or zero-rating rule applies before you finalise the total.
A typical reverse-charge invoice lists concrete line items such as: Cross-border consultancy (20 x $95); Support retainer (1 x $500). Always show quantities, unit prices, and the tax amount per line so the grand total is transparent and easy to verify.
Practical tips: 1. Verify the customer’s VAT number on VIES before issuing. 2. Never add VAT when reverse charge applies. 3. Keep proof the customer is VAT-registered.. Good invoicing habits - consistent numbering, clear payment terms, and prompt delivery - reduce late payments and build trust.
InvoiceFormly helps you produce a correct reverse-charge invoice in minutes. Pick the template, enter your details, add line items, and download a clean PDF or send it by email. Tax math, numbering, and multilingual labels are handled automatically so you can focus on the work.