EU VAT reverse charge for wholesale, explained
Under the EU VAT reverse charge, a supplier in one EU country sells to a registered business in another EU country without charging VAT; the buyer, not the supplier, declares and, where due, pays that VAT in its own country. It only applies between two businesses with a valid VAT number, never to a private buyer.
Who declares the VAT, and why
In an ordinary domestic sale, the supplier charges VAT and pays it to its own tax authority. Under the reverse charge, that duty moves to the buyer, who declares the VAT itself on its own return instead.
The rule exists so a supplier does not have to register for VAT in every country it sells to, and to make the kind of cross-border fraud that relies on VAT actually being paid harder to run.
The European Commission's own page on who is liable for VAT, and the Council of the EU's own summary of the reverse charge mechanism, set out the rule in full — both linked below.
What has to be true for it to apply
Both companies need a valid VAT number, and both need to be VAT-registered businesses, not private buyers. A private individual is always charged VAT by the supplier, with no reverse charge available.
Checking the other company's VAT number with VIES before the reverse charge is applied on an invoice confirms it is currently valid — the same check described on WholesaleX's own VAT number checker.
The invoice itself should state that the reverse charge applies, in a line such as "reverse charge" or its national-language equivalent, rather than simply omitting VAT with no explanation.
What this means in practice for a buyer
As the buyer, seeing no VAT on a cross-border EU invoice does not mean the purchase is VAT-free — it means the buyer, not the supplier, now has to account for it correctly.
The exact way to declare it, and whether any is actually due, depends on national rules and the buyer's own VAT status, which is a question for an accountant, not something this page can answer for a given business.
Keeping the supplier's invoice that states the reverse charge, together with its VAT number, is the usual paper trail for this — the accounting detail still belongs to a qualified adviser.
Checking the other company's own VAT number before applying the reverse charge takes seconds on the EU VAT number checker
The same VIES check is the first thing WholesaleX itself runs on every listed supplier, described on How we check suppliers
Suppliers in the directory are also grouped by country on all countries
Questions
Does the reverse charge mean no VAT is paid at all?
No. It moves who declares, and where due pays, the VAT from the supplier to the buyer — it does not remove the VAT obligation itself.
Does the reverse charge apply to a private buyer?
No. It only applies between two VAT-registered businesses; a private individual is always charged VAT directly by the supplier.
How do I know if the other company's VAT number is valid?
VIES, the European Commission's free VAT Information Exchange System, checks an EU VAT number in seconds — the same check WholesaleX itself runs on listed suppliers.
Is this page tax advice?
No. It explains the general EU rule in plain terms; a specific purchase or company's own situation is a question for an accountant or tax adviser.
General information, not legal or tax advice.