reverse-charge invoice

A reverse-charge invoice is what you send when the tax is not yours to collect — it belongs to your customer. For freelancers selling services between EU countries, it is the normal way to bill: you charge 0%, note the rule, and let the client account for the VAT in their own country. Done properly, it keeps cross-border work simple and fully compliant, and it spares you from registering for tax in every market you touch. Get the wording right once and the pattern repeats safely on every cross-border job.

What to include

A reverse-charge invoice needs the usual identifiers plus a few extras. Put your VAT number and the customer's VAT number on it, state the exact phrase "reverse charge", show 0% VAT on every line, and note the place of supply. If you sell to consumers, the reverse charge does not apply and you must charge local VAT instead. Skip any of these required bits and the document can be rejected for VAT purposes, which is a headache neither side wants.

How the tax works

This invoice is used for B2B supplies between EU countries. You charge 0% and write "Reverse charge — VAT payable by the customer" alongside both VAT numbers. The customer then declares and pays the VAT in their own country, so no tax changes hands on your invoice at all. The effective rate here is 0%. Before you finalise the total, confirm the reverse-charge rule actually applies to that client and that country, because getting this wrong can leave you liable for someone else's tax.

Example line items

Invoice

reverse-charge invoice

Invoice no.
INV-2026-014
Date
2026-07-15

From

Your Company

123 Business Rd, Your City

VAT No.: EX123456789

To

Client Name

Client Company, Client City

DescriptionQtyRateAmount
Cross-border consultancy20$95.00$1,900.00
Support retainer1$500.00$500.00
Subtotal
$2,400.00
VAT (0%)
$0.00
Total
$2,400.00

Notes

Reverse charge applies. VAT to be accounted for by the customer.

Example preview — not a real invoice

A reverse-charge invoice still lists real work, just without VAT:

  • Cross-border consultancy — 20 hours × $95 = $1,900
  • Support retainer — 1 × $500 = $500

Show quantities, unit prices and the (zero) tax per line so the total is transparent. Keep the description tied to the actual service so the zero-rating is easy to justify later.

Practical tips

Verify the customer's VAT number on the EU's VIES database before you issue anything. Never add VAT when reverse charge applies — a 0% line is correct, not a mistake. Keep proof the customer is VAT-registered, because that evidence is what backs up the 0% treatment if you are ever questioned. Consistent numbering and clear payment terms still matter; they just sit on top of a zero-tax invoice. If you would rather not juggle the wording, the invoice generator prints the reverse-charge text for you.

Treat the reverse-charge invoice as a small formality that unlocks cross-border work. Get the wording right and the tax takes care of itself.

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FAQ

Is reverse charge only for EU?

It mainly applies to B2B supplies within the EU and some special domestic schemes; outside the EU normal export rules may apply.

Do I charge VAT?

No. You charge 0% and the customer accounts for VAT in their own country using both VAT numbers.