How does VAT reverse charging work?

At Webador, we've incorporated the EU's tax requirements in our system. If a customer places an order in your webshop with the attributes detailed below, 0% VAT will be charged and the invoice will state "VAT reversed":

  • The customer is a company/business
  • The customer is located in another EU member state and has provided a valid VAT number

You'll need to ensure that your order form is set up in such a way that business customers can place orders, and that you've set up the relevant VAT rates.

If you don't want to use this function, follow the steps below:

Step 1

In the Editor, go to the Online store tab.

Step 2

In the menu on the left, click on Online store settings, then click on Advanced settings.

Step 3

Disable the Tax reverse charging option.

Step 4

Click on Save.

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