The tax shown on an invoice documenting a transaction which should be subject to a reverse charge is not deductible. However, the tax authorities should refund such VAT paid if recovery of the VAT from the supplier would be impossible or excessively difficult…. This content is for Full Membership members only. Want to read background,...

A Member State could not have introduced a reverse charge mechanism before notification of the Council implementing decision. A reverse charge can only be applied by a Member State after notification of the Council implementing decision, not before that notification…. This content is for Full Membership members only. Want to read background, core of the...

The supplier issued an invoice showing VAT. The tax authorities, however, ordered the buyer to settle this transaction on a reverse charge basis. At the same time – according to national regulations – the supplier no longer has the right to correct his invoice „in minus”. In this situation, the buyer cannot be denied the…...

According to the Directive, the reverse charge for supplies of immovable property may apply only where it relates to immovable property as defined in Article 135.1.j and k of the VATD and where an option to opt for taxation has been introduced. This is not the case here. Reverse charge is not permissible in such…...

If a transaction is subject to reverse charge, the purchaser cannot deduct input VAT incorrectly stated on an invoice. However, he may seek a refund of the unduly paid VAT to the supplier from the tax authorities if it proves excessively difficult to recover it from the supplier. It is disproportionate to apply a sanction…...