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How is my invoice created? Reverse-charge explained
How is my invoice created? Reverse-charge explained

VAT - Tax - Tax liability - VAT - Invoice - VAT Id - VAT ID

Scarlet Klimek avatar
Written by Scarlet Klimek
Updated over a week ago

There are different types of invoices that we issue based on different conditions. The VAT percentage is added to the invoice amount.

A. Complete VAT invoices

This invoice is created if:

  • your company is located within the EU, but no VAT identification number is specified

  • your company is located in Germany

  • For private persons, as the OSS procedure applies here.

The OSS procedure is a procedure that applies in the EU since July 1, 2021, and simplifies the taxation of cross-border online sales of goods and services.

For private individuals, this means that they will only have to pay the VAT of their country of residence if they buy goods or services from a company outside their country of residence.

B. Invoices with reverse-charge no VAT

VAT is not charged. Also, the word "reverse-charge" is mentioned.

This invoice is created when:

  • your company is located outside the EU

  • your company is located within the EU and a valid VAT number is provided

Selecting the country of the company's registered office and inserting the local VAT number, the payment provider will validate if the reverse-charge can be applied to your company. Customers from Austria and Switzerland select their country from the menu.

  • Austrian tax number example: ATU12345678

  • Company identification number (UID): CHE123456789

Before you post your invoice, you should check all the contents. The reverse-charge procedure should be indicated.

After this step, you can book the rates, and we can issue the invoice without VAT.

C. Bills

You can download all of your Invoices under Settings > Your Account, at the bottom of the Page.

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