Reverse Charge: What It Is and When to Apply It on an Invoice

Under reverse charge, the supplier issues the invoice without VAT, and the beneficiary is the one who “closes” the VAT: they record it simultaneously as collected VAT and deductible VAT. The fiscal effect is neutral, but specific rules apply on the invoice.

What a reverse-charge invoice looks like

• The taxable base appears normally, on the lines.
• No VAT is calculated — you don’t include a tax amount.
• You add the mandatory mention “reverse charge.”

The rest of the mandatory elements stay the same.

When it applies

• Domestic operations set by law for certain categories of goods and services.
• Intra-Community B2B services, where the beneficiary in another member state self-assesses the VAT.

The rule doesn’t apply everywhere — check whether your operation actually falls under the categories set by law.

Why getting it right matters

A reverse-charge invoice handled incorrectly (with VAT added, or without the mention) creates problems for the client’s deduction and for the VAT report. In e-Factura, the VAT category must be marked correctly, or the invoice can be rejected.

How facturifirma helps

In facturifirma you choose the “reverse charge” VAT category on a line: the app doesn’t calculate VAT, automatically adds the correct mention on the invoice, and marks the category correctly for e-Factura — so the invoice goes out valid to ANAF, without manual adjustments.