Stripe reverse charge invoice for EU B2B sales: how to set it up

TL;DR

Reverse charge applies when you have a validated EU VAT ID for a business customer in a different member state: Stripe Tax then sets the tax rate to zero and marks the invoice reverse charged. Collect and validate the tax ID at checkout, store it on the customer, and include the customer's VAT ID plus a reverse-charge note on the invoice. Get the validation step right; everything else follows.

Steps

1. Enable tax ID collection at checkout and validate the EU VAT ID via VIES.

Expected: Only real VAT-registered businesses get reverse charge.

1. Store the validated tax ID on the Stripe customer object.

Expected: Future invoices inherit the exemption automatically.

1. Confirm Stripe Tax applies a zero rate with reverse-charge treatment on the invoice.

Expected: The invoice shows no VAT charged, correctly.

1. Add the invoice custom text: customer VAT ID and a reverse charge statement for the customer's records.

Expected: The invoice satisfies audit requirements on both sides.

1. Review periodically: expired or invalidated VAT IDs must lose the treatment.

Expected: Exemptions stay current.

When to use

• You sell B2B across EU member states
• A business customer provides a valid EU VAT ID
• Invoices must show reverse-charge treatment

When not to use

• The customer is a consumer (B2C always charges VAT)
• Buyer and seller are in the same member state (domestic rules apply)
• The VAT ID is invalid (charge VAT and fix the ID first)

Compatibility

Stripe Tax with EU VAT support; tax ID collection in Checkout. Invoice custom fields and footer text for the reverse-charge note.

Variant phrasings

### Stripe EU B2B VAT reverse charge setup

### zero VAT invoice EU business customer

### reverse charge note Stripe invoice

Root cause

EU VAT law shifts the VAT accounting to the buyer for cross-border B2B supplies to avoid sellers registering in every member state. Stripe Tax implements this as a zero rate plus reverse-charge metadata, but only when a validated ID proves the buyer is a real taxable business.

Edge cases

• Digital services have special place-of-supply rules; confirm your category
• Northern Ireland follows EU goods rules but UK services rules: check both
• Some member states require specific reverse-charge wording; template it per country

Provenance

Resolved from the public thread: https://vectle.com/posts/pst_YOpUmAR-czfpXCZkFY3Xnw