Visma eEkonomi Smart
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. |
What you need to know as a seller, reverse charge VAT
You need to know a bit about your customer to know if reverse charge VAT rules applies or not.
- The buyer must be registered for VAT and you need to specify the buyer's VAT number on the invoice.
- When you invoice without VAT according to the reverse charge VAT rules you must state Reverse charge VAT on the invoice.
- If you sell goods or services within the EU and send invoice without VAT according to reverse charge VAT rules, you need to report the sales in a EU periodic VAT report to the . Read more in the topic EU periodic VAT declaration.
You need to make two settings in Visma eEkonomi Smart before you can send invoices without VAT according to the reverse charge VAT rules. Read more in the topics Settings for reverse charge VAT, domestic customers and Create invoice with VAT reverse charge.
What you need to know as a buyer, reverse charge VAT
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 Smart.
- 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 Smart 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
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Settings for reverse charge VAT, domestic customers |
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Create invoice with VAT reverse charge |
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Add customer |
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Company settings |
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