Article 196 Reverse Charge Invoicing: VAT Shifted

Article 196 Reverse Charge: How to Invoice B2B Services in the EU

Updated: 11 August 2026 VAT Reverse charge Invoicing

Selling a service to a business customer in another EU country moves the VAT to that customer. The customer reports it in their own return — the reverse charge, anchored in Article 196 of the EU VAT Directive. The invoice follows a fixed pattern.

What the reverse charge does

Instead of the seller charging VAT, the business buyer accounts for it in their own country, at their own rate, in their own return. For most buyers it is a wash: they report the VAT and deduct it in the same return. The seller’s invoice goes out at 0% with a fixed reference.

What goes on the invoice

Your own VAT identification number and the customer’s VAT number — verified via the VIES check.
The line “VAT reverse charged” (btw verlegd), with the legal anchor: Article 196 of Directive 2006/112/EC.
An amount at 0% Dutch VAT.

What follows after the invoice

The sale lands in your Dutch VAT return under intra-EU services, and in the EU sales list (ICP) with the customer’s VAT number. The two declarations mirror each other; the tax authorities match them.

The scope

Article 196 covers the general B2B services rule. Goods follow their own regime — the intra-EU supply at 0% with transport proof — and consumers follow the B2C rules. The wider map of cross-border VAT stands in VAT across borders.

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Frequently Asked Questions

Which sentence goes on a reverse-charge invoice? +

“VAT reverse charged — Article 196 Directive 2006/112/EC”, together with both VAT numbers. The Dutch wording “btw verlegd” carries the same weight.

Does the reverse charge apply to consumers? +

The mechanism is B2B only. Sales to consumers in the EU follow the destination rules with the OSS return above the €10,000 threshold.