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EU B2B reverse charge explained
Updated: 1 November 2026 · Klik&Shop
Supplying services or goods to a business in another EU country? You usually don't charge your domestic VAT. Here is the short version.
Services to a business in another EU country
For most business-to-business (B2B) services the general rule applies: the service is taxed where the customer is established (Article 44 of the EU VAT Directive). You don't charge your own VAT; the customer accounts for VAT in their own country. This is the reverse charge (Article 196 of the VAT Directive). There are exceptions, for example for services related to immovable property, passenger transport and admission to events.
Goods to a business in another EU country
If you sell goods that are transported to another EU country, this is an intra-community supply at 0% VAT. Conditions include: your customer holds a valid VAT identification number in another member state, the goods demonstrably leave your country, and you include the supply in your EC Sales List (recapitulative statement). Since the EU 'quick fixes' of 2020, the valid VAT number and the EC Sales List are substantive conditions: without them the 0% rate can be denied.
What goes on the invoice?
- Your VAT number and your customer's VAT number.
- No VAT amount, but the note "Reverse charge" for services. For goods, state that it is an intra-community supply.
- The usual invoice details: date, number, names and addresses, description, amount.
Returns and EC Sales List
Report these supplies in your VAT return in the box for intra-EU supplies, and file the EC Sales List with each customer's VAT number and amount. In the Netherlands this is box 3b and the 'opgaaf intracommunautaire prestaties' (ICP). A wrong VAT number in the EC Sales List is quickly flagged.
So: validate your customer's VAT number
Because the customer's VAT number is a condition for the reverse charge and the 0% rate, check it before you invoice, for every new customer and periodically for regular customers. Use the free VAT number check or read how to check an EU VAT number. Invoicing many EU customers? Automate it with the EU VAT Check API.
What about consumers?
For sales to consumers in other EU countries (B2C) different rules apply: above the EU threshold of €10,000 per year you charge the customer's country's VAT, often via the One-Stop Shop (OSS). The reverse charge does not apply.
FAQ
What do I put on a reverse charge invoice?
Both VAT numbers (yours and your customer's), no VAT amount, and the text 'Reverse charge'. Plus the usual invoice details.
Do I need to validate my EU customer's VAT number?
Yes, it is wise. For 0% intra-community supplies a valid customer VAT number is a substantive condition. Check it in VIES and keep the result with the date.
Check a VAT number now
5 one-time free checks via VIES, or automate with the API (5 free checks a month).