Apply reverse-charge on invoices
Selling to businesses in the EU, Australia, or New Zealand? Quaderno will automatically apply reverse-charge on your B2B invoices when applicable.
What is reverse-charge?
Reverse-charge means the responsibility of VAT/GST reporting for the sale moves from the seller to the buyer. The seller does not apply VAT/GST on the invoice if the reverse-charge mechanism can be used.
Keep in mind, reverse-charge is only applicable on B2B sales to other countries, where applicable (not your own country).
Want to learn more? Check out our blog article on reverse-charge.
Automatically apply reverse-charge on your invoices
The good news is that if you’re using one of our integrations, Quaderno can take care of this automatically. Quaderno determines if transactions are B2B by the business number. It will automatically add the "reverse-charge" note on invoices to make them compliant, where applicable.
Quaderno can automatically verify:
When one of these numbers is provided, Quaderno automatically checks the validity of number with the respective tax authority. If reverse-charge applies, this will be displayed on the invoice.
How it works with Quaderno:
1. Collect VAT numbers in your checkout:
- Customising your Stripe integration
- Customising your PayPal integration
- Collect VAT numbers on your Shopify store
2. Quaderno automatically verifies the VAT number, ABN, or NZBN.
3. The business number and reverse-charge note will appear on the final invoice.
What happens if the business number isn’t valid?
By default VAT/GST will be calculated for the charge. If you think this could be a mistake, first check the validity of the business number (search for the number on the links above!) or contact us and we’d be happy to help.
Manually apply reverse-charge on your invoice
There could be a number of situations when you may need to add a business number and apply reverse-charge a posteriori or when creating a manual invoice.
Just follow these steps:
1. Open the invoice in Sales > Invoices.
2. Select Edit and add the corresponding tax ID.
3. Select none in the tax fields for the line items on the invoice
4. Go to "Need to add more details?" and add the note "Tax Reverse charged".