Applying reverse charge on invoices

Selling to businesses in other countries? Quaderno automatically applies reverse charge on your B2B invoices when applicable. No tax rate is applied — the responsibility for tax reporting moves from the seller to the buyer.

Automatically applying reverse charge on your invoices

If you're using one of the Quaderno integrations, Quaderno handles this automatically. Quaderno determines B2B transactions by the customer's tax ID and adds the required reverse charge note on qualifying invoices.

Quaderno can automatically verify these tax IDs:

• EU VAT numbers
• UK VAT numbers
• Australian Business Numbers
• New Zealand Business Numbers
• Quebec QST registration numbers
• Swiss UID numbers

Creating an invoice with reverse charge

To create a reverse charge invoice manually, follow these steps:

1. Go to the invoices page.
2. Click Create invoice.
3. In the Customer data section, select the customer and fill in all their details, including the Tax ID field.
4. Select None in the tax fields for each line item.
5. In the Other data section, add a note in the Notes field explaining that no taxes apply due to reverse charge — for example: "VAT reverse charged."
6. Save the invoice.

Common questions

What happens if the customer's tax ID isn't valid?

Quaderno applies the standard tax rate for the transaction instead of reverse charge. If you believe the tax ID is valid, verify it directly using one of the verification databases listed above.

Will reverse charge apply on B2B sales to customers in my own country?

No, Quaderno does not apply reverse charge on B2B sales to customers in your own country.

What happens if I make B2B sales to customers in countries or regions where Quaderno cannot validate tax IDs?

In these cases, Quaderno cannot automatically apply reverse charge. Not every country exposes a publicly accessible database for tax ID validation.

Why does my customer's VAT number appear as unavailable if it is a valid VAT number?

The tax ID validation service was temporarily unavailable. Quaderno could not confirm whether reverse charge applies, so it charged the standard tax rate as a precaution. Quaderno will automatically retry verification on the customer's next purchase or subscription renewal.