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Customs Glossary/VAT Reverse Charge

VAT Reverse Charge

Duties & taxes

PL: Odwrotne obciążenie VAT (reverse charge) | DE: Umkehrung der Steuerschuldnerschaft

Definition

VAT reverse charge is a mechanism where the obligation to account for VAT shifts from seller to buyer. In international trade, it applies to intra-Community acquisitions and import of services. The buyer charges output VAT and simultaneously deducts input VAT, making it cash-neutral.

Related Terms

VAT Reverse Charge — Customs Glossary | Celna24.com | Celna24.com