Two Separate Invoicing Streams
Debitura cases involve two distinct invoicing relationships:
You invoice the Client for the success fee (and any approved additional costs) when debt is recovered. This is the collection service invoice.
Debitura invoices you for the platform's revenue share after you have received your fees. This is a separate invoice from Debitura and should not be mixed into your invoice to the client.
Each stream has its own VAT rules based on who is the supplier and where they are located.
Partner to Client Invoices (Success Fee)
Core Principle: VAT is Added on Top
When VAT applies, it must be calculated on top of your success fee, not deducted from it.
Correct approach:
Success fee (net) + other taxable costs = taxable base
Apply VAT rate (if applicable) to that base
Total invoice = net fees + VAT
Incorrect approach:
Treating the success fee as "VAT included" and reducing it to make room for VAT
Deducting VAT from the success fee as if VAT is part of the fee
Example: If your success fee is EUR 1,000 and VAT is 25%, the client pays EUR 1,250 (EUR 1,000 + EUR 250 VAT). The VAT is not taken out of the EUR 1,000.
Common Scenarios by Geography
Scenario | Typical Outcome | What to Include on Invoice |
A. Domestic (you and client in same country) | Charge local VAT (or sales tax) | Net fee + VAT line + total |
B. Cross-border EU (B2B, client is VAT-registered) | No VAT charged (reverse charge) | Client's VAT ID, reverse charge wording, VAT shown as 0% |
C. EU partner to non-EU client | No EU VAT charged (export of services) | VAT not charged, note as outside scope/zero-rated if required locally |
D. Non-EU partner to EU client | No EU VAT from partner | Client may self-account under local reverse charge rules |
E. US partner to US client | Depends on state nexus and whether state taxes debt collection services | Check state-specific rules |
What is Reverse Charge?
For many cross-border B2B services within the EU, the reverse charge mechanism applies. This means you issue an invoice without VAT, and the client self-accounts for VAT in their own country. The client then handles their VAT obligations in their VAT return.
Client Details to Collect
For correct invoicing, collect these details from your clients:
Company name and address
Company registration number
VAT ID (essential for EU cross-border reverse charge treatment)
Country of establishment
If you are an EU partner invoicing another EU business cross-border, the client's valid VAT ID is typically required for reverse charge to apply.
Invoice Content Checklist
At minimum, your invoice to the client should include:
Success fee (net, excluding VAT)
Any approved additional costs (net, if taxable)
VAT rate and VAT amount (if charging VAT)
Total payable
Client's VAT ID (for EU cross-border B2B)
Reverse charge wording (if applicable)
Debitura to Partner Invoices (Revenue Share)
After you report recovered payments and your earnings are confirmed, Debitura invoices you for the platform's revenue share. This is a separate B2B service invoice from Debitura to your firm.
Debitura's Location
Debitura LLC is incorporated in the United States (300 Delaware Ave, Ste 210 #557, Wilmington, DE 19801). This means Debitura is a non-EU supplier when invoicing you. The United States does not have a VAT system, and Delaware has no state sales tax.
VAT Treatment on Debitura's Invoices to You
Because Debitura is a US company, it does not charge VAT or US sales tax on its invoices. Whether you owe any tax on the service you receive from Debitura depends on your own country's rules for importing services from a non-EU supplier:
Your Location | Typical VAT Treatment |
EU country (VAT-registered) | Debitura invoices without VAT. You must self-account for VAT on the imported service under the reverse charge mechanism (Article 196 of the EU VAT Directive). You declare VAT as both output and input tax on your VAT return, making it typically VAT-neutral if you have full deduction rights. |
Non-EU country | No VAT or sales tax is charged by Debitura. The transaction is outside the scope of EU VAT entirely. Check your local tax rules for any obligations on imported services (e.g., GST on imported services, withholding tax). |
United States | No sales tax is charged by Debitura (Delaware has no sales tax). Check your own state's rules, though B2B platform services are generally not subject to sales tax in most states. |
Your VAT Number in Account Settings
To ensure Debitura's invoices to you are handled correctly, enter your VAT number in your Account Settings. This helps Debitura apply the correct VAT treatment and ensures your VAT ID appears on the invoices you receive.
Key billing fields in Settings:
Company VAT Number - Your VAT/tax number (shown on invoices)
Billing Email - Where Debitura sends invoices
Billing Currency - Currency for Debitura's invoices to you (EUR, USD, or GBP)
Billing Contact Person Name - Contact name on invoices
If VAT on an Invoice Looks Incorrect
On Your Invoice to a Client
If a client questions your VAT treatment:
Verify the client's location and VAT registration status.
Confirm whether reverse charge or local VAT should apply based on the scenario table above.
If you made an error, issue a corrected invoice or credit note per your local invoicing rules.
For complex situations, consult your accountant or tax advisor.
On Debitura's Invoice to You
If the VAT on a Debitura invoice appears incorrect:
Check that your VAT number is correctly entered in Account Settings.
Verify that Debitura has your current company details and country.
If the issue persists, contact Debitura support with your invoice number and explain the concern.
Important Notes
This is not tax advice. VAT and sales tax rules vary by country and can change. Confirm requirements with your accountant or tax advisor.
No cure, no pay timing: VAT only becomes relevant when a success fee is actually invoiced, which happens after successful recovery.
Debitura does not invoice clients. You invoice the client for the success fee. Debitura invoices you for the revenue share.
📋 Non-Exclusive Partners
If you are a Legal Network (non-exclusive) partner with custom pricing, the same VAT principles apply to your client invoices. The main difference is your pricing structure, not the VAT treatment.
Related Pages
Where to Find This in the Platform
Account Settings - Update your VAT number and billing details
Partner Balance - View your earnings and reconciliation