This works differently in non-EU countries where they do not have the option for VAT exempt.

They are required to withhold the tax and submit it to the tax authorities. So we need to have a line on the invoice stating that the invoice is tax inclusive and that reverse mechanism tax withholding was carried out by the customer.

This also affects effect the price shown (tax-exclusive + tax), amount charged to the credit card (tax exclusive), invoice (showing price, tax, tax withheld, and a legally required line that reverse mechanism was used.

Using India as an example the invoice would need to show all of the following:

Monthly service charge: $10,000

Totals:

Invoice total (tax exclusive): $10,000

Taxes $1,000

Total charged to the card: $10,000

Reverse Tax Mechanism is being used