When to read this article
You're a VAT-registered business in an EU member state other than Cyprus, you're subscribing to TaxItEasy (or you've already subscribed and noticed you're being charged Cyprus VAT), and you want to know how to enable reverse charge so the VAT is handled in your own country. This article walks through the mechanism, the VIES validation step, who qualifies, and the edge cases.
For the broader plan-billing context, see switch or cancel your plan. For your own customers' VAT handling (the output VAT you charge them), see understanding the VAT aggregation view — this article is specifically about the VAT on our invoice to you.
What reverse charge means
We are TaxItEasy, operated by THE GROVVEST AI LTD — a company registered in Cyprus (HE 478768).
When a Cyprus-based vendor (us) sells to a VAT-registered business in another EU member state (you in Germany, France, Italy, etc.), the EU's reverse-charge mechanism for intra-community supplies allows the invoice to be issued with VAT 0%. The buyer self-accounts for the VAT in their own country, reporting both input and output sides on their own VAT return — typically netting to zero.
The practical result:
- You don't pay Cyprus VAT to us. Our invoice to you shows VAT 0% with the relevant Cyprus law reference (Cyprus VAT Law Article 12B).
- You handle the VAT on your own return. Under your own country's intra-community-acquisition rules, you both report and deduct the VAT on the same return, typically netting to zero (in countries where you have full input-VAT-deduction rights).
- The transaction is recorded as an intra-community supply at our end — we file the EC Sales List in Cyprus.
The mechanism is standardised across the EU under Council Directive 2006/112/EC. The local implementation (Umsatzsteuergesetz §13b in Germany, CGI Art. 283 in France, etc.) varies in detail but the outcome is identical for B2B intra-community supplies of services.
How to enable it
At checkout
When you upgrade to a paid plan, the checkout form has a "Tax details" section with a VAT ID field. Enter your VAT ID in your country's format. Stripe validates it against VIES (see below) before you finalise the subscription.
If the VAT ID is valid and your country isn't Cyprus, reverse charge applies on the first invoice and every subsequent one.
After signup
If you signed up without entering a VAT ID (or you didn't have one then):
Settings → Billing → Tax details.- Enter your VAT ID in your country's format (e.g.
DE123456789,FR12345678901,IT12345678901,IE1234567T). - Click
Validate and save. Stripe validates against VIES; you see the result inline. - If valid and you're outside Cyprus, the next invoice from us (next renewal) shows VAT 0% with reverse charge applied.
Past invoices issued before you added the VAT ID are final — they cannot be retroactively reverse-charged. The VAT charged on them is a real Cyprus tax that's been remitted; we don't have a mechanism to claw it back. Going forward from the moment of VAT ID validation, reverse charge applies.
Format per country
The most common EU VAT ID formats:
| Country | Format | Example |
|---|---|---|
| Germany | DE + 9 digits |
DE123456789 |
| France | FR + 11 chars (2 letters/digits + 9 digits) |
FR12345678901 |
| Italy | IT + 11 digits |
IT12345678901 |
| Spain | ES + 9 chars |
ESA1234567Z |
| Netherlands | NL + 9 digits + B + 2 digits |
NL123456789B01 |
| Belgium | BE + 10 digits |
BE0123456789 |
| Austria | AT + U + 8 digits |
ATU12345678 |
| Ireland | IE + 7 chars + 1–2 letters |
IE1234567T |
| Poland | PL + 10 digits |
PL1234567890 |
| Portugal | PT + 9 digits |
PT123456789 |
| Sweden | SE + 12 digits |
SE123456789012 |
For other EU member states, see the VIES documentation; Stripe accepts any valid EU member state's format.
What VIES validation checks
VIES (VAT Information Exchange System) is the EU's official VAT-ID validation service. When Stripe submits your VAT ID:
- Valid / invalid status — the VAT ID exists in the member state's register and is active.
- Registered company name and address — if the member state shares this (most do; Germany doesn't by default).
- Last validation timestamp — when VIES last refreshed the entry.
If VIES returns "valid" + you're outside Cyprus, reverse charge applies. If VIES returns "invalid" (typo, lapsed registration, country code mismatch), Stripe rejects the input and you stay on the Cyprus-VAT regime.
Stripe re-validates periodically — typically once per quarter or before each annual renewal. If your VAT ID becomes invalid later (company struck off, status change, registration moved), the next invoice falls back to Cyprus VAT until you update.
VIES is the official validation source. Other services (third-party VAT-lookup APIs, manual checks) aren't substitutes — Stripe and most EU vendors require VIES specifically.
Who can use reverse charge
The mechanism applies under specific conditions:
- You must be a VAT-registered business in an EU member state other than Cyprus. Cypriot businesses pay Cyprus VAT (it's a same-country sale; reverse charge doesn't apply).
- You must be a B2B buyer (a legal entity registered for VAT). Private individuals and businesses that aren't VAT-registered (e.g. small businesses below the VAT threshold in their country) pay Cyprus VAT — reverse charge is B2B-only.
- Your VAT ID must be valid in VIES. A locally-registered VAT number that VIES doesn't know about doesn't qualify.
Outside-EU buyers (UK post-Brexit, US, Switzerland, Norway, etc.) are handled separately:
- UK businesses: typically no Cyprus VAT (intra-community supply of services to a non-EU business), no reverse charge either (different mechanism). Your invoice from us shows VAT 0% with a different clause (place-of-supply rules).
- US / non-EU: no Cyprus VAT, no reverse charge (B2B place-of-supply is buyer's country).
- Switzerland / Norway: similar to other non-EU; VAT handling is per the bilateral / EEA arrangement.
For non-EU users, see your local tax rules for any reverse-charge equivalent your country expects on imported B2B services.
What appears on your invoice
When reverse charge applies, our invoice to you shows:
- VAT line:
VAT 0% — Reverse charge applies (Cyprus VAT Law Art. 12B)(exact wording per country variant Stripe uses). - Your VAT ID printed on the invoice for your records.
- Our company VAT ID (Cyprus) for your records and for your own tax-return supporting documentation.
Both VAT IDs visible side-by-side is the standard format for intra-community-supply invoices and is what your tax authority expects to see when you record the reverse-charge transaction on your own return.
Edge cases
My VAT ID is valid but Stripe says invalid. Sometimes VIES is briefly down for a member state — the validation service is run by each country's tax authority, and occasional downtime happens. Retry in a few hours. If it persists, write to [email protected] with [BILLING] — we can override manually if you provide a screenshot of a successful VIES validation result from ec.europa.eu/taxation_customs/vies/.
I updated my VAT ID — when does the next invoice reflect it? Immediately. The next renewal invoice from us will use the new ID. Past invoices stay as issued — they cannot be retroactively re-issued with reverse charge.
My company moved to a different EU country. Add the new VAT ID, remove the old one. Reverse-charge rules apply per current VAT ID, not per historic. The transition month might see a mix (old country's VAT for the early part, reverse charge for the later part) depending on when you update.
I want a credit note for past VAT charged before I added my VAT ID. Past invoices are final under Cyprus VAT law and Stripe's invoicing mechanics; we can't retroactively apply reverse charge. The VAT on past invoices was remitted to Cyprus tax authority. You can't recover that retroactively from us. The path forward: add the VAT ID now, reverse charge applies from the next invoice.
I want a single invoice for my entire team on different plans. Currently each subscription generates its own invoice. Consolidated invoicing for multi-company / multi-subscription accounts isn't supported yet; on the 2026 roadmap. Workaround: for accounting purposes, you can reconcile the separate invoices manually under a single supplier line.
I'm in Cyprus — can I get an exemption? No. We're Cypriot, you're Cypriot, the transaction is a same-country sale. Cyprus VAT applies. There's no Cyprus-to-Cyprus B2B reverse charge in the EU framework (reverse charge is specifically for cross-border intra-community).
I'm in a UK or Swiss B2B context — is there a similar mechanism? Yes, but it's not the EU reverse charge. For UK: post-Brexit, supplies of services from EU to UK B2B are typically zero-rated at the supplier's side under the place-of-supply rules; the UK buyer accounts for VAT under the UK's reverse-charge mechanism. The invoice format is similar but the legal basis is different. For Switzerland: similar place-of-supply mechanism under Swiss VAT (MwSt).
The VAT amount I see on my Stripe invoice doesn't match what my accountant calculated. Most likely your country's reverse-charge form needs both the gross amount and the VAT-as-self-accounted shown side-by-side. The Stripe invoice shows VAT 0% as charged; the VAT you self-account for at your own rate is separate (e.g. 19% in Germany applied to the net amount, both reported as input AND output on the same return). Your accountant fills in both sides on the local form.
Can I have my accountant's email receive the invoice instead of mine? Yes — Settings → Billing → Invoice email. You can set a separate email for invoice receipts vs the account-owner's email used for everything else.
Related
- Switch or cancel your plan — when the invoice is generated
- Annual vs monthly billing — reverse charge applies identically to both cycles
- Understanding the VAT aggregation view — your own customers' VAT (different surface)