Invoice to the EU under the reverse charge
How to invoice a business with a VAT number in another EU country in Vporiadku: the reverse charge sentence, 0 % rates and the EC sales list.
When you provide a service to a business with a VAT number in another EU country, the customer pays the tax in its own country (Article 196 of Directive 2006/112/EC). The invoice carries no Slovak VAT, but a reverse charge sentence. Vporiadku adds the sentence and sets the rates to 0 % by itself.
Step by step
Fill in the EU customer
In Clients enter the customer’s country and VAT number. Check the VAT number in VIES right in the client detail.
Create the invoice
Open New Invoice and choose the customer. The field VAT Legal Text gets the reverse charge sentence (Article 196 of Directive 2006/112/EC).
Check the rates
The VAT rates of all lines go to 0 %, and a notice under the items says why. With this sentence, Vporiadku would not save a line at a higher rate.
For goods, change the sentence
The sentence is for a service. If you supply goods, replace it with the sentence on the exemption under § 43 (supply of goods to another member state).
Issue the invoice and file the EC sales list
Press Issue Invoice. The invoice appears in the EC sales list for the period in VAT reports.
Why the rates go to 0 %
A tax the supplier states on the invoice is owed by the supplier (§ 69(5) of the Slovak VAT Act), even though the sentence on the invoice says the customer pays it, and the customer cannot deduct it either. So with the reverse charge sentence of Article 196 or the § 43 exemption, Vporiadku does not save a line at a rate above 0 %.
When the service is taxed in Slovakia after all
Some services are taxed in Slovakia even for a foreign business, services connected with real estate in Slovakia for example (§ 16(1)). Then delete the reverse charge sentence in the VAT Legal Text field or rewrite it in your own words. You can then set the rates as needed.
Frequently asked questions
- Does the sentence have to be in English?
- No. The sentence follows the language of the document: „Reverse charge“ on an English invoice; on a Ukrainian, Czech, German or Russian one the Slovak sentence of the act is printed under the translation.
- What is the domestic reverse charge?
- A different case: a supply between two Slovak VAT payers, construction work for example (§ 69(12)). Then the reverse charge is marked on the invoice line.
Did not find your answer? Write to us at podpora@vporiadku.sk; we answer in Slovak, English and Ukrainian.
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