Normally you charge VAT to your client and remit it to the tax authorities. But in certain situations you may not charge VAT and the VAT shifts to your client. That's called the reverse-charge scheme. This article explains when you must reverse-charge VAT and how to draw up the invoice correctly.
What is reverse-charged VAT?
Reverse-charged VAT means the obligation to calculate and remit VAT shifts from you, the supplier, to your client, the customer. You send an invoice without VAT and state that the VAT is reverse-charged. Your client calculates the VAT themselves and declares it in their own return.
When must you reverse-charge VAT?
The reverse-charge scheme applies in specific, designated situations. The best known are subcontracting and lending staff in construction, shipbuilding, cleaning and landscaping, and doing business abroad. It also applies to, among other things, waste and old materials, certain electronics, and the sale of real estate.
What do you put on the invoice?
With reverse-charged VAT you put on the invoice the text 'VAT reverse-charged', the amount excluding VAT, the VAT rate that would normally apply, and your client's VAT identification number. Always check that your client is a business with a valid VAT number, for example via the VIES check. If the number is wrong, the tax authorities can still hold you liable for the VAT.
How do you process it in your return?
As the supplier you state the turnover on which you reverse-charged VAT in your return, but you don't remit VAT. You can still reclaim VAT on your own costs for that job. If you're the customer to whom VAT was reverse-charged, you calculate the VAT yourself and declare it, after which you usually deduct it again as input tax in the same return.
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
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