TC-0002 · Billing
One of our clients in Germany asked why our invoice shows 0% VAT. Could you confirm the legal reference we can quote to them?
Hi Sebastiaan, that's the intra-EU reverse-charge mechanism (Art. 196 of the EU VAT Directive 2006/112/EC). Because your client supplied a valid VAT number, VAT is accounted for by the recipient. We print that note on the invoice automatically.
Perfect, that's exactly what I needed. Thanks!