The Czech Republic has applied for the introduction of a generalised reverse charge system, which will apply to all supplies of goods and services in the Czech Republic worth over 17,500 euros (approx. 450,000 CZK). In such cases, the obligation to declare VAT will automatically be shifted from the supplier to the customer. The possibility of introducing this measure in local legislation is subject to compliance with the entry criteria stated in the Council Directive and to the final approval of the EU Council. If the Czech application is approved, the MoF estimates that changes to the Czech VAT Act will be effective starting from 1 July 2020 and lasting until June 2022.Read More »
Tag: reverse charge
Norway – Installation lead to VAT registration obligation – current court decision
We experience that foreign Entrepreneurs believe that VAT in Norway on supplies of goods with installation can be handled by B2B customer on a reverse charge basis, similar to the VAT treatment in most EU countries. Sadly, since Norway is not a member of the EU, the reverse charge mechanism is not applicable, and the supplier will in most cases be obliged to register for VAT in Norway and charge Norwegian VAT to its customer.Read More »
Poland – changes as from 1 of January 2017
Since changes in VAT law have been accepted by Polish Parliament, please find below the most important changes concerning the reverse charge mechanism that will probably enter into force as of 1 January 2017.
As a general rule, if a foreign company registered for VAT purposes in Poland supplies goods to an entity established in Poland, it should charge Polish VAT, unless an obligatory reverse charge mechanism applies.Read More »
European Commission publishes study on application and impact of optional reverse charge mechanism within EU VAT system
On 23 December 2014, the European Commission has published online a study entitled “Assessment of the application and impact of the optional ‘Reverse Charge Mechanism’ within the EU VAT system” (the Study).
Germany – Extension of transition period for application of reverse charge mechanism for certain metals, selenium and cermet until 30.06.2015
The German Ministry of Finance extended the transition period for the application of the reverse charge mechanism for certain metals, selenium and cermet pursuant to § 13 b para. 2 no. 11 German VAT law (with exception of e.g. supplies of gold and scrap metals, which were already subject to the reverse charge mechanism prior to 1 October 2014) from 31 December 2014 to 30 June 2015. Read More »
Czech Republic – Local reverse charge mechanism as from 1 of January 2015 – updated list published
The list of commodities where reverse charge will be newly applicable was amended. Of interest are especially the exceptions. Exceptions in case of “raw or semi-processed metals” listed under the Customs Tariff nomenclature codes – Chapter 71 and Section XV should include (i.e. the local reverse-charge mechanism will not apply to) the following items: Read More »
Germany – Reverse Charge for some metal products as from 1 October 2014
In order to fight against tax fraud there is a change of the tax liability for number of metal products as from 1 of October. Reverse charge is applicable for the products in the list below. Therefore it is of utmost importance to check all the incoming invoices for this type of products as incorrectly charged VAT by the supplier will be not credited by the tax authorities. In case of a VAT audit such input VAT will have to repay back with additional late payment interest as well as possible penalties.
The Netherlands – reverse charge on certain products as from 1 of April 2013 as a measure to avoid the VAT fraud – btw verlegd
Companies selling goods as mobile phones, tablet PC’s, laptops, game consoles or integrated circuit devices (e.g. CPU’s) in the total value of Euro 10.000 or more have to apply reverse charge mechanism for local Dutch supplies as from 1 of April 2013. Reverse charge mechanism means that the purchaser has to account for the VAT due on the transaction in his own VAT return. Read More »
Poland – Abolition of the reverse charge system as from 1 April 2013
Two years ago Poland introduced the reverse charge system for local supplies of goods by non-established entities. As a consequence foreign companies without permanent establishment in Poland are not allowed to charge VAT on their local supplies. This caused some cash flow difficulties as many of these companies are always in recovery position.
As from 1 April 2013 this system will be abolished and non-established companies will again have to charge local VAT on domestic supplies (some minor exceptions where the reverse charge will be applicable will remain).
The Netherlands – optional reverse charge for computer and mobile phones as of June 1, 2012
The Dutch State Secretary of Finance has announced (29 May) that he has taken measures to combat VAT carousel fraud, and that from 1 June 2012 an optional reverse charge mechanism will apply to supplies of mobile phones and computer parts with a value not less than Euro 10,000.
Michaela Merz 