When you buy or sell services across borders within the EU, the reverse charge shifts who accounts for IVA — from the seller to the buyer.
Last updated: June 2026
Normally, the seller charges IVA and remits it. Under the reverse charge (inversione contabile), the buyer instead self-assesses the VAT, declaring both the output VAT (as if charged) and corresponding input VAT on their own return. For a business with full VAT recovery, this is usually VAT-neutral, since the two entries cancel out.
If you’re an Italian business under regime ordinario selling general-rule services (consulting, IT, design, and similar) to a VAT-registered business customer elsewhere in the EU, the sale is typically outside Italian VAT scope, and your customer accounts for VAT under their own country’s reverse charge rules. Your invoice should reference "inversione contabile" / "reverse charge" and show no Italian IVA.
If you’re an Italian business under regime ordinario buying services from a supplier in another EU country, you’re typically the one who must self-assess Italian IVA under the reverse charge, declaring it on your own return. Freelancers on regime forfettario have specific, different treatment for reverse charge purchases — check current rules, since forfettario’s general no-IVA-charged status doesn’t automatically exempt you from all reverse charge obligations on purchases.
Yes, you need to verify their VAT number via the EU’s VIES system to confirm they’re a genuine VAT-registered business before treating a sale under the reverse charge.
Regime forfettario has specific, different treatment for reverse charge transactions, particularly on purchases — it isn’t simply "no IVA, no reverse charge either." Check current rules or consult a commercialista.
This can result in unpaid IVA and potential penalties on review — reverse charge purchases from EU suppliers should be actively tracked and included in your own IVA position, not just filed away as a normal expense.
The specific mechanism is primarily an EU cross-border B2B concept, though similar place-of-supply principles (outside Italian VAT scope for B2B services) often apply to non-EU business clients under general rules.
Yes, they still count as part of your revenue for threshold purposes, even though no Italian IVA is actually charged on the invoice.
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