Reverse Charge is a VAT mechanism to block fraud and cut down the tax report preparation. This means that the seller doesn’t have to include his or her part in the VAT and it is the buyer who must do so. And especially for the most fraud susceptible sectors such as telecommunications or construction. The shift of the VAT obligation allows tax authorities to cut further the missing trader fraud. If you are using this mechanism, get your invoice to say ‘Reverse charge applies’ and your VAT returns be correctly reflecting the correct figures.

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