Last updated November 6, 2026
Rules and figures from other sources checked on November 6, 2026. They change, so confirm with the source before you rely on them.
General information, not tax or legal advice. The rules depend on your country and your situation, so check anything with a tax or legal consequence with your accountant.
The wording an EU reverse-charge invoice must carry is the two words "Reverse charge", with both VAT numbers and no VAT added. Article 226(11a) of the VAT Directive sets that mention. A fuller sentence is fine if those words appear, for example: "Reverse charge: VAT to be accounted for by the customer under Article 196 of Directive 2006/112/EC."
What wording do you put on a reverse-charge invoice?
The wording on a reverse-charge invoice can be as short as the mention itself. Article 226(11a) requires the mention "Reverse charge" where the customer is liable for the VAT, and the European Commission's invoicing page repeats it. Either of these works for services sold to a business in another EU country:
Reverse charge
Reverse charge: VAT to be accounted for by the customer under Article 196 of Directive 2006/112/EC.
The longer one earns its space. It tells the customer's accounts team what to do, and that saves you a question by email.
A reverse-charge invoice example
Here's an invented example, with placeholder VAT numbers. A software consultant in one EU country bills a company in another for 30 hours at €80.
Invoice INV-2026-0108. Issued 2 April 2026. Supplied in March 2026.
From: Quay Software Ltd, VAT number AA000000000.
To: Tern Logistics GmbH, VAT number BB000000000.
| Description | Qty | Unit price | Net | VAT |
|---|---|---|---|---|
| Software consulting, March 2026 | 30 h | €80.00 | €2,400.00 | Reverse charge |
| Total to pay | €2,400.00 | €0.00 |
Reverse charge: VAT to be accounted for by the customer under Article 196 of Directive 2006/112/EC.
The customer pays €2,400 and declares VAT at its own country's rate. The guide to invoicing EU clients shows that side of the sum.
Which sales need which wording?
The right wording depends on the type of sale, and "Reverse charge" is the correct label for only some of them.
| Sale | What the invoice says | Basis |
|---|---|---|
| Services to a business in another EU country | "Reverse charge" | Articles 44, 196 and 226(11a) |
| Goods to a business in another EU country | A reference to the exemption, not "Reverse charge" | Articles 138 and 226(11) |
| Domestic reverse charge, such as construction or scrap, where your country uses one | "Reverse charge", plus anything national rules add | Articles 199 and 226(11a) |
| Middle company in a triangular sale of goods | "Reverse charge" | Case C-247/21 |
| Services to a business outside the EU | No fixed EU wording. Your home country's rules apply | Articles 44 and 219a |
| UK construction services | See the UK section below | VAT Act 1994, section 55A |
For goods, the mention refers to the exemption. The Commission's explanatory notes accept the word "Exempt" on its own, but a reference is clearer:
Exempt intra-Community supply of goods: Article 138(1), Directive 2006/112/EC.
For services to a business outside the EU, a plain sentence does the job. Check it against your own tax authority's guidance:
No EU VAT charged. Services supplied to a business established outside the EU (Article 44, Directive 2006/112/EC).
How does UK reverse-charge wording differ?
UK reverse-charge wording mostly comes up in the domestic reverse charge for building and construction services. HMRC's technical guide asks the supplier to show everything a VAT invoice normally shows, note that the reverse charge applies and that the customer must account for the VAT, and state how much VAT is due, or the rate if the amount can't be shown. The VAT is never added to the amount charged.
HMRC gives these examples of wording that meets the requirement:
VAT Act 1994 Section 55A applies
S55A VATA 94 applies
Customer to pay the VAT to HMRC
Here's an invented example. A subcontractor bills £1,000 of labour at the 20% rate. The contractor pays £1,000 and accounts to HMRC for the £200 itself, so the note on the invoice reads:
Reverse charge: customer to pay the VAT to HMRC. VAT to account for: £200.00 at 20%.
A UK business selling services to a business in the EU is in a different position. Notice 741A treats most of those sales as outside the scope of UK VAT, and the customer accounts for any tax under its own country's rules.
Reverse-charge invoice checklist
Run this reverse-charge invoice checklist before you send a cross-border EU services invoice.
- The customer is a business in another EU country, and the service isn't one with its own place-of-supply rule, such as work on a building.
- The customer's VAT number is valid in VIES, and you have kept the result.
- Your VAT number is on the invoice.
- The customer's VAT number is on the invoice, with its country prefix.
- The words "Reverse charge" appear on the invoice.
- No VAT has been added, so the total equals the net amount.
- It is a full invoice with the standard VAT invoice fields, not a simplified one, which Article 238(3) rules out.
- It is issued no later than the 15th of the month after the supply (Article 222).
- The sale is flagged for your EC Sales List and the right box of your VAT return.
The mistakes that cause trouble
- "VAT 0%" with no mention. A zero on its own reads the same as an exempt or zero-rated sale, and it doesn't say who owes the tax.
- Leaving it to fix later. In case C-247/21, Luxury Trust Automobil, the Court of Justice held that a triangular-sale invoice missing the words "Reverse charge" couldn't be put right afterwards by a later statement. That case is about triangular sales, but it shows how much weight the two words can carry.
- Charging VAT to be safe. Where Article 196 applies, the customer owes the VAT. Adding yours creates a wrong invoice that has to be corrected.
- The mention printed on every invoice. A template with a fixed "Reverse charge" line puts a false statement on your domestic sales.
- Using it for private customers. A private person can't account for VAT under this mechanism, so they pay your VAT.
Reverse-charge wording on an ERPFlow invoice
In ERPFlow, the mention comes from the tax rate on the line. Under Settings > Tax rates, create a rate with the type Reverse charge at 0%, and pick it on the invoice lines it applies to. The type is a label, so the percentage you enter is what makes the line carry no tax. The Free plan holds a single tax rate, so adding this beside a standard rate needs Starter or above.
- What prints: a "Reverse Charge 0%" row in the totals, and your VAT number and the VAT ID from the customer record. The label follows the invoice's language, so a German PDF says "Reverse-Charge".
- The longer sentence: add it in Notes, which print on the PDF.
- Exempt goods: use a rate of type Exempt, and put the Article 138 reference in Notes.
- If you forgot: an issued invoice can't be edited. Use Mark as void, then Duplicate, and issue the corrected copy under a new number.
ERPFlow doesn't decide when the reverse charge applies, has no VIES lookup, and doesn't fill in your EC Sales List. There is one more limit on e-invoices: the Peppol XML export sets the category from the rate alone, so a 0% line goes out as zero-rated (category Z) with no exemption reason, even when you picked Reverse charge. Your Notes travel in the file, but Peppol's reverse-charge category isn't set, so raise it with your e-invoice operator if a customer needs one.