VAT, intra-EU reverse charge and VIES for the car dealer

In B2B transactions between European Union member states, VAT is not always charged by the provider: it's often the business customer who self-declares it in their own country. This is the mechanism known as the "reverse charge". It saves the seller from collecting foreign VAT and the buyer from fronting a tax they would then have to reclaim.

• B2B service sales between EU countries
• VAT is self-declared by the customer in their country
• The provider invoices excl. VAT under certain conditions

The reverse charge only applies if the business customer has a valid intra-EU VAT number. VIES (VAT Information Exchange System) is the European service used to check that validity. A valid, verifiable number is the condition for applying the reverse charge: without it, local VAT remains due.

• VIES: verification of intra-EU VAT numbers
• A valid number is the condition for the reverse charge
• An invalid number triggers the application of local VAT

The Pro subscription is billed through Stripe, with an invoice generated on each payment. As Luxydrive is established in Luxembourg, Luxembourg VAT of 17% applies by default. If you are a company from another member state with a VAT number valid in VIES, the intra-EU reverse charge applies and your invoice is issued without Luxembourg VAT.

• Billing through Stripe, downloadable invoice on each payment
• Luxembourg VAT of 17% by default
• Reverse charge if the VAT number is valid in VIES (outside LU)

Everything comes down to your Pro account: enter your company and your VAT number, which is verified through VIES. An accurate, active number guarantees compliant billing and the application of the reverse charge when you're entitled to it. Check that the legal name and the declared number match, to avoid any rejection.

• Company and VAT number entered in the Pro account
• Automatic verification through VIES
• Consistency between legal name and VAT number

This article explains the billing of your subscription and the broad principles of the intra-EU reverse charge. It does not constitute tax advice and does not cover VAT on the sale of the vehicles themselves (margin scheme, new or used vehicles, cross-border sales), which follows its own specific rules. For your own situation, talk to your accountant.

• General information, not personalized tax advice
• VAT on vehicle sales follows its own rules
• Consult your accountant for your case