VAT Reverse Charge for EU Sales

The VAT reverse charge is a mechanism used for B2B sales between EU countries. Instead of the seller charging VAT, the buyer accounts for it in their own country. storq.io applies this automatically when the right conditions are met.

When the Reverse Charge Applies

The reverse charge is applied when all of the following are true:

• Your business is registered for VAT
• The customer is in a different EU country
• The customer has a valid VAT number on file

When these conditions are met, the invoice is issued at 0% VAT with a reverse charge notice.

Setting Up for Reverse Charge

1. Go to Settings and add your VAT Number under company details.
2. When creating or editing a customer, enter their VAT Number and Country.
3. Configure a Tax Rate for the customer's country if you haven't already.

How It Appears on Invoices

Invoices where the reverse charge applies show:

• A 0% tax rate on all line items
• Your VAT number and the customer's VAT number
• A notice stating "VAT reverse charge applies"

Record Keeping

Keep a record of all reverse charge invoices for your VAT return. The invoice list can be filtered and exported to help with this.