In today's globalized economy, maintaining accurate and compliant tax documentation is paramount. One crucial aspect of tax compliance is ensuring that tax invoices contain the correct information - this includes the correct citations. The most common citations are related to the reverse charge, self-billing, exemptions and invoicing on behalf.

In the EU, when applying the reverse charge mechanism on cross-border transactions, a reference to this mechanism must appear on the invoice in the appropriate language. However, there is no single, comprehensive, accessible source which outlines what is acceptable in every language. So we thought we’d give you a starting point and save you searching through the local VAT legislation of each and every EU Member State.

In which countries can you Use the English phrase “Reverse-Charge”?

Several countries explicitly permit the English phrase “reverse charge” to be used. This includes:

1. Croatia,
2. Ireland,
3. Malta, and
4. Denmark

In Ireland, the VAT act is also drawn up in Gaelic. Still, it's worth noting that the English version of the Act is the authoritative version, so in case of any discrepancies between the two versions, the English version takes precedence.

In Malta, both the Maltese and the English versions of the Value Added Tax (VAT) Act in Malta are authoritative, as they are considered equally valid under Maltese law. The Maltese version of the VAT Act is the official text of the law, while the English version is an official translation. In the event of any discrepancies between the two versions, the Maltese text prevails. However, the Maltese and English versions both use the English phrase “Reverse-Charge”.

The official language of Cyprus is Greek, but English is widely spoken and used as an official language alongside Greek. Most laws and regulations, including the VAT Act, are published in English.

Where can I learn more about the Reverse Charge?

Want to read more about the reverse charge in general? We have written about what it is and who it is for. And we have also covered lesser-known aspects of the reverse charge globally. And, if you are interested, we also covered how the reverse charge has changed in Europe after the UK left the EU.

How can Fonoa help?

Knowing which citations to include on which invoice and in the right language is crucial for staying tax compliant. Doing this correctly in Europe is a great first step; doing this accurately globally is the next challenge.

• With Fonoa invoicing, you can be confident your tax invoices apply accurate citations in the relevant languages in over 130 countries.
• Future-proof your business and accounting software with Fonoa as the supports digital reporting and e-invoicing globally where its required (in addition to the conventional invoices).
• With Fonoa Lookup, you can instantly validate your buyers’ tax IDs, helping you understand if you’re selling to B2B or B2C and applying the reverse charge correctly to cross-border transactions.

Please reach out if you want to learn more or discuss how our tax experts can help you automate your VAT compliance process.