What is reverse-charge VAT in the EU?

For business-to-business sales of services across EU borders, the seller usually charges 0% VAT and the buyer accounts for VAT in their own country under the reverse-charge mechanism. The invoice must show 0% VAT and state "Reverse charge" with both parties' VAT numbers. The builder does this automatically for the intra-EU B2B scenario.

What VAT rate should I use?

For a domestic sale you use your country's standard rate, for example 19% in Germany, 20% in France, or 21% in Spain. The builder loads the standard rate for your selected country and applies it to domestic sales, while applying 0% for reverse-charge and export scenarios.

What must an EU VAT invoice contain?

Under the EU VAT Directive an invoice needs a sequential number, the issue date, the supplier's and customer's names, addresses, and VAT identification numbers, a description of the supply, the taxable amount, the VAT rate and amount, and the total. The builder produces these fields.

When do I charge VAT to an EU customer?

You charge your domestic VAT for sales within your own country. For cross-border B2B services to a VAT-registered business in another member state, reverse charge applies and you charge 0%. For exports outside the EU, the supply is generally zero-rated. The builder covers all three.

Why include an IBAN on the invoice?

SEPA bank transfers across the EU are made using the IBAN and often the BIC. Including them lets your customer pay without requesting your bank details separately, which speeds up payment. The builder has dedicated IBAN and BIC fields.

EU Invoice Builder (Multi-Country)

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One invoice builder for the whole single market

Selling across the EU means handling domestic VAT, the reverse-charge mechanism for cross-border B2B services, and zero-rated exports — each with different wording the invoice must carry. This builder loads your country’s standard VAT rate, applies the right treatment for the customer scenario you pick, and outputs a compliant invoice with IBAN payment details.

How it works

Each line item is quantity times net unit price, summing to the taxable amount. The VAT treatment depends on the scenario you select. For a domestic sale, the tool applies your country’s standard rate (loaded automatically — for example 19% Germany, 20% France, 21% Spain, 22% Italy) to the taxable amount. For an intra-EU B2B supply, it sets VAT to 0% and prints the legally required note Reverse charge - VAT to be accounted for by the recipient (Art. 196 VAT Directive), listing both VAT identification numbers. For an export outside the EU, it applies 0% and prints a zero-rated export note. The total is the taxable amount plus any VAT. IBAN and BIC fields render a SEPA payment block.

Tips and example

Always quote both VAT identification numbers on a reverse-charge invoice — yours and the customer’s — because the buyer needs them to self-account for VAT. Verify the customer’s VAT number is valid (the EU’s VIES system does this) before treating a sale as reverse charge; if it is not valid, you must charge domestic VAT. Use a strictly sequential invoice number. A €1,000 domestic German sale adds €190 VAT (19%) for €1,190, whereas the same sale to a French business under reverse charge shows €0 VAT, a €1,000 total, and the Art. 196 note. Include your IBAN and BIC so SEPA payment is one step for the customer.