Regulation
Reverse charge
Tax procedure in which liability for VAT passes to the buyer.
The reverse charge procedure is an EU mechanism under which, in B2B transactions between different EU countries, liability for VAT passes from the seller to the buyer.
For CBD wholesalers this means: on deliveries to B2B customers in other EU countries, no VAT is shown on the invoice. The buyer declares the tax in their own VAT return.
Hemp Wholesale Europe applies the reverse charge procedure automatically when an EU partner with a valid VAT ID orders. Invoices are issued with the corresponding note that the recipient is liable for the tax.