Michaela Merz

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Czech Republik – Introduction of general reverse charge as from 2020 probable

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. Continue reading

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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. Continue reading

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Poland – changes as from 1 of January 2017

90104_web_r_by_jerzy_pixelio-deSince 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. Continue reading

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European Commission publishes study on application and impact of optional reverse charge mechanism within EU VAT system

People walking outside an office building - PwC, Photo_RGB_PC_ 395.jpgOn 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).

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Germany – Extension of transition period for application of reverse charge mechanism for certain metals, selenium and cermet until 30.06.2015

PwC Global Brand  Industry: Downstream Refinery Construction ExpansionPhoto_RGB_Rep_0571_004.jpgThe 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. Continue reading


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: Continue reading

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Germany – Reverse Charge for some metal products as from 1 October 2014

PwC Global Brand  Industry: Downstream Refinery Construction Expansion Photo_RGB_Rep_0571_004.jpgIn 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.

Reverse Charge für Metallerzeugnisse