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# How to Apply Reverse Charge VAT?

Reverse charge VAT is typically applied in situations where the responsibility for reporting and paying VAT shifts from the supplier to the customer. It is commonly used in business-to-business transactions involving goods or services that fall within the scope of reverse charge rules.

It's important to note that the specific rules and conditions for applying reverse charge VAT may vary between countries. Therefore, it is advisable to consult with local tax authorities or a tax professional to ensure compliance with the relevant regulations in your jurisdiction.

### How to do it?
1. Select **SETTINGS** from the menu bar
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/settings_qjslmo.png)
2. Select **TYPES OF VAT** in the sidebar
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/types-of-vat_1qfjmz6.png)
3. Add the **VAT25** type and select the **article of the law**
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-05-30-at-12042_1ld186w.png)
4. Confirm the settings by clicking **SAVE CHANGES**
![](https://storage.crisp.chat/users/helpdesk/website/a9835b72ea0f8000/screenshot-2024-05-30-at-12043_1b4sl6n.png)
| When creating the invoice, select the newly added **VAT25** type.