Visma eEkonomi Bokföring
Construction sector, VAT reverse charge
has created a regulatory framework for reverse charge VAT. The aim is to counter tax fraud. Reverse charge VAT rules must apply when selling goods and services covered by the rules.
What is reverse charge VAT?
Reverse charge VAT is an exemption to the main rule to add VAT on sales invoices. When the rules for reverse charge VAT applies, it is the buyer and not the seller that reports the VAT and the invoice is sent without VAT. The recipient of the invoice is obliged to add both output VAT and input VAT and report it to
.When do reverse charge VAT rules apply?
Below are examples and not a complete list of situations when reverse charge VAT rules apply and invoices are sent without VAT. For the latest information on reverse VAT, see
Goods sold within EU countries | Within |
---|---|
Goods sold within EU, when both seller and buyer is VAT registered and the goods are transported from one EU country to another. The buyers' VAT number and "Reverse charge VAT" must be stated on the invoice. | Construction sector, when both seller and buyer is VAT registered, services within the construction sector are invoiced without VAT and "Reverse charge VAT" must be stated on the invoice. This also applies to middleman who does not usually belong to the construction sector. Sales of waste and scrap of certain metals. |
You as the buyer, or receiver of the invoice is responsible to make sure that the purchase invoice includes all requirements.
- The invoice you receive is without VAT, in order for you to report the VAT you need to add it when you register the invoice in Visma eEkonomi Bokföring.
- Your VAT number and that reverse charge VAT rules applies should be stated on the invoice. If it is missing and no VAT is added to the invoice you should contact the supplier and ask for a new invoice.
- When you register the invoice in Visma eEkonomi Bokföring you add VAT according to the current VAT rates.
The added rows for output VAT and input VAT is registered on specific ledger accounts. See instruction for registering purchase invoice without VAT according to the reverse charge VAT rules in the topic Register purchase invoice with VAT reverse charge.
Related topics
Company settings |
Work smarter
This is how you can work most effectively
Accounting - Everything you'll (ever) need to know about accounting
Free accounting course - The accounting school
Learn how to understand the chart of accounts
Video tutorials
Accounting questions
Check out the accounting questions and answers in our forum.
Search words: vat reverse