Does Reverse charge support transactions within the country?
What are the countries that support the Reverse charge mechanism?
A reverse charge is a tax mechanism where the liability to pay taxes falls upon your customer - the buyer of your products or services, and not on you - the supplier. The reverse charge mechanism is applicable in various countries and based on your requirements, you can configure to collect reverse charges from customers in specific countries.
Contact to enable this feature for your site.
To enable Reverse Charge on your site, contact to enable this feature and once enabled and to apply reverse charges for customers of specific countries in your Chargebee site, follow these steps:
1. Reverse charge is supported only in cases of cross-border transactions and is not supported for domestic transactions on Chargebee manual taxation. Chargebee only checks whether the country of the buyer and the supplier are different. So even if there's a tax registration number in the buyer's country, reverse charges will be applied
2. In the case of third-party tax integrations, if the tax provider categorizes a transaction for a reverse charge, the same will be applied irrespective of the configuration
You can also enable the setting to Show note on reverse charge to display a note on invoices when the reverse charge is applied. The Reverse charge note is a common feature applicable for both Chargebee taxes and third-party taxes.
1. For certain countries like Australia and India, this setting will be enabled by default.
2. However, for most countries, it will be disabled by default, and you need to manually enable the setting
3. For the European Union(EU) and the United Kingdom(UK), you can only edit the reverse charge note but whether or not to display a VAT exemption note for the reverse charge is not customizable