A EUR receipt for a cross-border EU sale often carries no VAT at all. This guide explains the reverse charge mechanism, why a valid VAT number changes the invoice, and what a euro receipt must show.
EUR Receipt
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Why a euro invoice to a business often shows zero VAT
A supplier in one EU country invoices a business in another, and the invoice shows no VAT. This looks like an error or a favour. It is neither — it is the reverse charge, and it is the defining feature of cross-border B2B trade inside the EU.
Under the reverse charge, the supplier does not charge VAT. Instead the customer accounts for it themselves in their own country, declaring both the VAT due and (where they are entitled to recover it) the VAT reclaimed — frequently netting to zero cash. The tax liability moves from the seller to the buyer, which is exactly what the name says.
The VAT number is what unlocks it
The reverse charge is not automatic. It depends on the customer being a VAT-registered business in another member state, and the supplier being able to evidence that.
Which means the practical requirements are precise:
The customer must supply a valid VAT identification number.
The supplier should verify it — the EU operates a public validation service (VIES) precisely for this, and checking is not optional diligence, it is what supports the supplier's treatment of the sale.
The invoice must show both parties' VAT numbers and a statement that the reverse charge applies.
No valid VAT number means no reverse charge — the customer is treated as a consumer, and VAT is charged at the supplier's local rate. This is why a missing VAT number at checkout can quietly cost a business 20% or more, and why it must be supplied at purchase, not corrected afterwards.
What a euro receipt must contain
Both VAT numbers — supplier's and customer's — for a reverse-charge sale.
An explicit reverse-charge statement, where it applies.
The net amount, the VAT rate and amount where VAT is charged, and the gross total.
A unique invoice number and the date of supply.
The currency — obvious, but where a business trades in several, an unlabelled figure is a genuine hazard.
Consumers are treated differently
The reverse charge applies to business customers. Sell to a private consumer in another member state and the treatment flips: VAT is generally due at the customer's local rate, and the supplier must account for it — the arrangement designed to stop businesses routing sales through low-VAT countries.
For digital services in particular, the place of supply is the customer's location, which is why the same download is priced differently across the EU and why sellers collect evidence of where a buyer is. A receipt to a consumer therefore will show VAT, at their country's rate — and a receipt to a verified business generally will not.
Keeping euro records
Keep the invoice in euros as the primary document, and record the rate you used to convert it into your reporting currency along with the date — a converted figure without its rate and date cannot be reconciled or audited.
VAT records generally have long retention requirements, commonly six years or more, and a reverse-charge sale must be reportable on both sides — so the documentation needs to survive. Where a VAT receipt is missing for a purchase that genuinely happened, the supplier can and should reissue: they are obliged to provide one to a VAT-registered customer, and only their document carries the VAT numbers that make the treatment valid. A reconstruction from your bank statement records your payment for your own files, but it cannot create reclaimable VAT — only the supplier's invoice does that.
Frequently asked questions
Everything you need to know about the product and billing.
Why does my EU invoice show no VAT?
Almost certainly the reverse charge. In cross-border B2B sales within the EU, the supplier does not charge VAT — the customer accounts for it in their own country, declaring the VAT due and reclaiming it where entitled.
What is the reverse charge?
A mechanism that shifts the VAT liability from the seller to the buyer. The supplier invoices without VAT, and the business customer self-accounts for it in their own member state.
Why does the supplier need my VAT number?
Because the reverse charge only applies to a VAT-registered business in another member state. Without a valid VAT number, you are treated as a consumer and charged VAT at the supplier's local rate — which can cost 20% or more.
What must a reverse-charge invoice show?
Both parties' VAT numbers, an explicit statement that the reverse charge applies, the net amount, a unique invoice number, and the date of supply.
Is it different for consumers?
Yes. Sales to private consumers in another member state are generally taxed at the customer's local VAT rate, which the supplier must account for. Business customers get the reverse charge; consumers get VAT.
How long must EU VAT records be kept?
Commonly six years or more, depending on the member state. A reverse-charge sale is reportable on both sides, so the documentation needs to survive that period.