What is VAT reverse charge?
With VAT reverse charge:
You charge 0% VAT
The VAT is shifted to the customer
The customer must provide a valid VAT number
This only applies to:
Sales from the Netherlands to another EU country
Business customers with a valid VAT number
Step 1: Enable taxes in WooCommerce
Go to:
WooCommerce → Settings → General
Enable: “Enable taxes”
Click Save changes
A new tab “Tax” will appear.
Step 2: Basic tax settings
Go to:
WooCommerce → Settings → Tax
Recommended settings for B2B:
Prices entered with tax: No (excluding VAT)
Display prices in the shop: Excluding VAT
Display prices during checkout: Excluding VAT
Step 3: Configure tax rates
Go to:
Tax → Standard rates
Add the following rules:
Netherlands (default VAT)
Country code: NL
Rate: 21%
Name: NL VAT
EU countries (consumers)
Country codes: DE, BE, FR, etc.
Set local VAT rates (or use OSS)
EU business (reverse charge)
Country code: EU country (e.g. DE)
Rate: 0%
Name: VAT reverse charge
Important:
This rule should only apply when a valid VAT number is provided (see next step)
Step 4: Add VAT number validation
WooCommerce does not support this by default. Use a plugin:
EU VAT Number
or
WooCommerce EU VAT Assistant
These plugins:
Validate VAT numbers via VIES (EU database)
Automatically apply 0% VAT when valid
Prevent incorrect tax exemptions
Recommended settings:
Enable VAT number field at checkout
Enable validation
Apply exemption only for customers outside NL
Step 5: Adjust checkout
Ensure customers can enter their VAT number:
Field: VAT number
Real-time validation
Optional:
Show only for business customers
Show only for EU countries ≠ Netherlands
Step 6: Set up invoices correctly
Your invoice must include:
Your VAT number
Customer’s VAT number
The mention: “VAT reverse charged”
Recommended plugin:
WooCommerce PDF Invoices & Packing Slips
Add this statement to your invoice:
VAT reverse charged according to Articles 44 and 196 of EU Directive
Step 7: Test your setup
Always test the following scenarios:
NL customer → 21% VAT
EU consumer → local VAT rate
EU business with valid VAT → 0% VAT (reverse charge)
Invalid VAT number → normal VAT applies
Common mistakes
No VAT validation → everyone gets 0% VAT
Dutch customers incorrectly exempted
Missing “VAT reverse charge” on invoice
Incorrect tax rule priority
Accounting integration
If you use an integration (e.g. Combidesk):
Ensure reverse charge is correctly synced
Map to the correct VAT code (intra-community supply)
Verify your ledger settings
Summary
To correctly set up VAT reverse charge in WooCommerce, you need:
Proper tax configuration
A 0% VAT rule for EU transactions
VAT number validation via plugin
Correct invoice labeling