If you are a selling to a Business you need to obtain and show your customer's VAT number (including the two-letter country prefix) and your own VAT number on your VAT sales invoice. Additionally check your customer’s VAT number in the VIES database, as this should be contained in the VIES search engine, because it reflects if the company is registered for Intra-EU transactions.
B2B sales fall under the reverse-charge mechanism, which means that you as a seller are not liable to pay VAT. We will show you how to issue a compliant B2B invoice in a few steps in the next paragraphs.
Issuing Invoices for B2B transaction in Europe is almost the same as for B2C transaction, only differences being your cutomer's VAT number and the 0 VAT rate, which need to be explicitly stated on the invoice. One important matter is your customer's VAT number which needs to be registered in the VIES search engine.
If your customer is a business in one of the EU member, you should follow the next steps below in order to have a compliant issue:
Ask for your customer's VAT number
Check your customer's VAT number in the VIES search engine
|1.) Select the country of your customer||2.) Insert you customer's VAT number||3.) Click verify (you don't need to enter anything into Requester Member state and VAT number)|
IMPORTANT: If you get an invalid response from the VIES search engine is because one of the 3 reasons below:
- VAT number does not exist
- VAT number is not activated for Intra-EU transactions
- the Intra-EU registration is not finalized yet
Read more about VIES and checking a VAT number here .
Issue a compliant Invoice like the following model:
|1.)unique and sequential identifying invoice number||4.)your full name and address and VAT number||7.)description of goods and services||10.) 0 vat rate as percentage|
|2.)invoice date||5.) customer's full name and address and VAT number||8.)date of supply to customer||11.)total amount|
|3.)date of payment if it's different from invoice issue date||6.)quantity of goods&services with net value and 0 VAT rate, 0 vat amount and gross value||9.)total net amount|