Reverse charge on your invoice: when, and what to state?
With a reverse charge, you don’t charge the VAT: your client pays it directly to the state. Your invoice then shows 0 euro VAT, with a required statement explaining why.
Case 1: building work for a Belgian business
Do you carry out work on immovable property, such as construction, renovation or installation work, for a client who files periodic VAT returns? Then the co-contractor scheme applies: your client pays the VAT.
- State “Reverse charge” on your invoice (in Dutch “Verlegging van heffing”, in French “Autoliquidation”).
- Put your client’s VAT number on the invoice.
- If you invoice a small business this way, a longer mandatory statement applies. Ask your accountant for the exact text.
Case 2: services to a business in another EU country
Do you supply services to a business with a VAT number in another EU country? Then your client usually pays the VAT in their own country.
- State “Reverse charge – Article 196, Directive 2006/112/EC”.
- Put your client’s VAT number on the invoice, and check it beforehand.
And via Peppol?
A reverse-charge invoice is a normal e-invoice. The reverse charge is included as a code in the data, so your client’s software handles it correctly. In Faktuno you choose the VAT regime for the client or the invoice, and the right statement and code are added automatically.