When you have several registrations across Europe, it can be difficult to remember all of the Value Added Tax (VAT) rules, and who is liable where. Our interactive map shows where responsibility to account for VAT may be switched to the customer.
Value Added Tax (VAT) is usually payable by the supplier who adds VAT, however in some instances; responsibility to account for VAT may be switched to the customer. This is called the reverse charge mechanism.
In some countries, reverse charge has been introduced only for certain goods or services, while in others, the question of who is going to pay VAT depends on the status of the supplier and the customer.
Entrepreneurs with several registrations across Europe can find it difficult to remember all of the rules, and who is liable where. And if the customer is liable to pay VAT, it must be reflected on the invoice issued by the supplier. This can cause serious headaches for accountants and managers of companies with many registrations.
Download our interactive map to see where reverse charge currently applies cross Europe, and whether it applies to selected goods, or to all goods.
The map provides you with a general overview of countries in which you as a customer should account for VAT, and is correct at the time of publishing. In some countries, additional conditions may impact on your VAT positions.
*The main rules regarding VAT at European Union level are provided in EU Directive (2006/112/EC), called the VAT Directive. However EU lawmakers left space for Member State governments to determine how to implement the VAT Directive. Who is liable to remit VAT is one of the areas where local governments can carve the EU Directive to their needs. Of course, this carving must be done within the VAT Directive framework.
Need further information? Get in touch with our VAT experts.
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