Glossary: Tax
VAT reverse charge
Under a VAT reverse charge, the buyer rather than the seller reports and pays the VAT due on a sale. It is commonly applied to cross-border B2B sales in the EU when the buyer supplies a valid VAT ID, so the seller's invoice shows no VAT. Rules vary by country and by goods or services.
Example
A German business with a valid VAT ID buys from a French seller; the invoice carries no French VAT and the buyer accounts for the VAT in Germany.
Learn more
Read the Tax and compliance hub for guides, use cases and setup docs, or the complete Shopify B2B guide.