Short answer: Yes! Automatic reverse charge for B2B EU cross-border transactions with proper notation.
Our EU VAT invoice generator fully supports the reverse charge mechanism for B2B transactions between EU member states, automatically applying it when conditions are met.
What is EU Reverse Charge?
Reverse charge is an EU VAT mechanism where:
- Customer (not supplier) pays VAT: VAT is charged in customer's country
- Supplier charges 0% VAT: No VAT added to invoice
- Both must be VAT-registered: Valid VAT numbers required
- Cross-border transaction: Different EU countries
This prevents double taxation and simplifies cross-border B2B transactions within the EU.
How Does Automatic Reverse Charge Work?
Our system automatically applies reverse charge when all conditions are met:
Conditions for Automatic Reverse Charge:
- Your company has VAT number: You're VAT-registered in an EU country
- Customer has VAT number: Customer is VAT-registered in an EU country
- Different countries: Your country ≠ customer's country
- Both in EU: Both countries are EU member states
When these conditions are met, the invoice automatically shows:
- 0% VAT rate
- Both VAT numbers displayed
- "Reverse charge applies" notation
- Net amount only (no VAT added)
What Does a Reverse Charge Invoice Look Like?
Our reverse charge invoices include:
- Supplier VAT Number: Your company's VAT ID
- Customer VAT Number: Customer's VAT ID
- VAT Rate: 0% or "Reverse Charge"
- Reverse Charge Notation: "VAT reverse charge applies - Customer liable to account for VAT"
- Net Amount: Pre-VAT amount (no VAT added)
- Gross Total: Same as net (no VAT)
Example Reverse Charge Invoice
Supplier: Your Company OÜ (Estonia) - VAT: EE123456789
Customer: Client GmbH (Germany) - VAT: DE987654321
Net Amount: €1,000.00
VAT (0% - Reverse Charge): €0.00
Total: €1,000.00
Note: "VAT reverse charge applies - Customer liable to account for VAT in Germany"
Which Transactions Qualify for Reverse Charge?
Reverse charge applies to most B2B services in the EU:
- Digital Services: SaaS, software, online courses, ebooks
- Consulting Services: Business consulting, legal, accounting
- Professional Services: Design, development, marketing
- Licensing: Software licenses, IP rights
- Data Services: APIs, data access, cloud services
For goods (physical products), different rules may apply depending on movement of goods.
How to Use Reverse Charge with CSV2Invoice
1. Include VAT Numbers in Your CSV
Ensure your CSV has these columns:
- Customer VAT Number: Full VAT ID (e.g., DE123456789)
- Billing Country: Customer's country code
- VAT Rate: Can be 0 or left for automatic detection
2. Map VAT Fields
When uploading CSV, map:
- Customer VAT number field
- Billing country field
- Net amount field
3. Enter Your VAT Details
Add your company VAT number in company settings. The system validates format automatically.
4. Generate Invoices
The system automatically:
- Validates both VAT numbers
- Checks if countries are different
- Applies reverse charge if conditions met
- Adds proper notation to invoice
VAT Number Validation for Reverse Charge
Our system validates VAT number format for all EU countries:
- Format Checking: Country-specific VAT format validation
- Structure Validation: Correct length and characters
- Country Code: Matches country prefix (DE, FR, EE, etc.)
If VAT number format is invalid, you'll see a warning before generating invoices.
What If Customer Doesn't Have VAT Number?
If customer lacks a VAT number:
- B2C Transaction: Treated as consumer sale
- No Reverse Charge: Standard VAT rules apply
- VAT Charged: Apply VAT based on place-of-supply rules
For digital services to EU consumers, you may need to charge VAT in customer's country depending on your turnover thresholds.
Reverse Charge for SaaS Companies
If you're a SaaS company selling to EU businesses:
- B2B Sales: Reverse charge applies automatically
- Stripe/ThriveCart Export: Include VAT numbers in CSV
- Bulk Processing: Generate invoices for entire month in minutes
- Accountant-Ready: All invoices have proper reverse charge notation
This is exactly what our EU VAT invoice generator was built for.
Common Reverse Charge Mistakes (We Prevent)
- Missing Reverse Charge Notation: We add it automatically
- Wrong VAT Rate: We force 0% when reverse charge applies
- Missing VAT Numbers: Validation catches before generation
- Incorrect Customer VAT: Format validation alerts you
Do I Still Need to Report Reverse Charge Transactions?
Yes! Even though you don't charge VAT:
- VAT Return: Report reverse charge sales
- EC Sales List: Report cross-border B2B transactions
- Your Accountant: Needs proper invoices for reporting
Our invoices give your accountant exactly what they need for compliance.