Intra-EU B2B Invoicing Rules for Used Electronics Resellers

Buying used phones from a supplier in another EU member state adds a layer of invoicing complexity that domestic purchases don't have. Whether VAT is charged, how it's charged, and what has to appear on the invoice all depend on rules that are easy to get wrong the first few times — and getting them wrong can mean an invoice your accountant can't process, or a VAT liability you didn't expect. This guide walks through how intra-EU B2B invoicing works for used electronics, where the reverse charge mechanism applies, and how the Margin Scheme changes the picture.

What Counts as an Intra-EU B2B Sale

An intra-EU B2B sale is any transaction where the seller and buyer are both VAT-registered businesses established in two different EU member states, and the goods physically move between them — an Estonian wholesaler selling to a German or French reseller, for example. This is the default scenario for nearly every cross-border order, and it determines which invoicing regime applies:

• Standard VAT stock moving cross-border between two VAT-registered businesses typically qualifies for the reverse charge mechanism.
• Margin Scheme stock follows its own rules regardless of the cross-border element, and the reverse charge does not apply to it at all.

Knowing which regime your stock falls under before the invoice arrives avoids most of the confusion resellers run into on their first few cross-border orders.

Reverse Charge Mechanism Explained

Under the reverse charge mechanism, the seller does not charge VAT on the invoice. Instead, the invoice states that VAT is to be accounted for by the buyer under the reverse charge, and the buyer self-assesses it in their own domestic return — declaring it as both output and input VAT, which in most cases nets to zero cash impact.

The mechanism exists so a seller doesn't have to register for VAT in every member state its business customers are based in. Two conditions have to hold: both parties must be VAT-registered businesses, and the buyer's VAT number must be valid and verifiable at the time of the transaction. If either fails, the seller is generally required to charge VAT at their own domestic rate instead — which is why an invalid or unverified VAT number is the single most common reason a cross-border order ends up with VAT added where the buyer expected a zero-rated invoice.

VAT Numbers and VIES Verification

VIES (VAT Information Exchange System) is the European Commission's free lookup tool for confirming a VAT identification number is currently valid and registered to an active business. Before issuing a reverse-charge invoice, a supplier should check the buyer's number through VIES and keep a record of that check — it's the documentation that supports the zero-VAT treatment if it's ever questioned. For a buyer, the practical takeaway is simple: have your VAT number confirmed active before placing a first cross-border order, and keep your own VIES check on file as part of your compliance records. A number that can't be verified usually means the supplier defaults to charging their local VAT rate instead, since they won't risk the exemption on an unverifiable number.

How the Margin Scheme Changes Things

This is where the two systems diverge sharply. Under Article 315 of the EU VAT Directive, Margin Scheme sales take priority over the standard reverse-charge rules for intra-community supplies. A Margin Scheme sale from a supplier in one member state to a reseller in another simply stays under the Margin Scheme — no VAT number cross-check is required for the treatment to apply, no reverse charge to self-assess, and nothing to reclaim, because no VAT was separately itemized in the first place.

For a deeper comparison of how the two schemes affect your landed cost, see our Marginal VAT vs Standard VAT guide and our Marginal VAT for used phones guide. Because Margin Scheme invoicing doesn't depend on VAT number verification, it's often the simpler path for resellers still setting up their VAT registration or looking to avoid tracking reverse-charge documentation across multiple supplier countries.

Required Invoice Elements for Cross-Border B2B Sales

Regardless of which scheme applies, a handful of elements need to appear on the invoice for it to process correctly on both ends:

• Both parties' VAT identification numbers, or a clear Margin Scheme statement where a number check doesn't apply.
• A sequential invoice number and issue date.
• A description of the goods — model, quantity, grade, and IMEI or batch reference where applicable, since generic descriptions are a common reason an accountant kicks an invoice back for clarification.
• The net amount, and for reverse-charge invoices, a reference to the applicable article or the phrase "reverse charge."
• For Margin Scheme invoices, wording such as "Margin scheme — second-hand goods" in place of a VAT breakdown.

Missing any of these fields doesn't necessarily invalidate the transaction, but it slows down processing.

Getting Set Up Before Your First Order

Before placing a first order with an EU supplier, confirm your own VAT registration status, which scheme the supplier's stock is sold under, and whether that scheme requires documentation beyond the invoice itself. A 100% Margin Scheme supplier removes most of this friction, since every invoice follows the same format with no VAT number dependency.

Current Margin Scheme stock is available at shop.smartchoice.ee/stock, with the same invoicing format applied across every order regardless of which EU member state you're based in.

FAQ

Do I need to charge VAT on a cross-border B2B sale of used phones within the EU?

Usually not, if the sale is invoiced under standard VAT and both parties are VAT-registered businesses in different EU member states. The reverse charge mechanism shifts the VAT liability to the buyer, so the seller issues a zero-VAT invoice. If the stock is sold under the Margin Scheme instead, the reverse charge does not apply — the seller's home-country margin VAT treatment carries over regardless of where the buyer is based.

What is VIES and why does it matter for intra-EU invoicing?

VIES (VAT Information Exchange System) is the EU's free online tool for confirming that a VAT identification number is valid and currently registered. Suppliers are expected to verify a buyer's VAT number through VIES before issuing a zero-rated reverse-charge invoice — an invalid or unverified number can invalidate the exemption and leave the seller liable for the VAT.

What has to appear on an intra-EU B2B invoice for used electronics?

At minimum: both parties' VAT identification numbers, the invoice date and a sequential invoice number, a description of the goods (model, IMEI or batch reference, grade, quantity), the net amount, and a reference to the applicable VAT treatment — either the reverse charge article reference or the Margin Scheme wording. Missing any of these fields is one of the most common reasons cross-border B2B invoices get rejected by a buyer's accountant.

Does the reverse charge mechanism apply if I buy Margin Scheme stock from another EU country?

No. Article 315 of the EU VAT Directive gives the Margin Scheme priority over the standard reverse-charge rules for intra-community supplies. A Margin Scheme sale from a supplier in one member state to a reseller in another stays under the Margin Scheme end to end — no VAT number cross-check is required for the exemption to apply, and no VAT is reclaimed on either side because none was separately charged.

What happens if I don't have a VAT number yet as a new reseller?

You can still buy from an EU supplier, but you won't qualify for reverse-charge treatment on standard VAT stock — the supplier will charge their local VAT rate instead, since the exemption depends on both parties being VAT-registered businesses. Margin Scheme stock is unaffected by this, since it never depended on a VAT number check in the first place, which is one reason new resellers without a VAT number often start there.