The reverse charge applies mainly to business-to-business sales. It means that the responsibility for the reporting of the VAT/GST/Sales Tax moves from the seller to the buyer. In this case, the seller does not apply the tax on the sale and the invoice.
Octobat can help you apply the reverse charge automatically in Europe, Australia, and New Zealand. Octobat determines whether a sale is B2B or B2C by verifying the validity of your customer's "tax ID".
When a reverse charge occurs in the EU, Octobat adds the following legal mentions on the invoice: "This invoice relates to services which are deemed to be supplied where received and under Article 196 Council Directive 2006/112/EC the customer must selfaccount for VAT on the reverse charge basis in their own jurisdiction"