AccountsPortal Blog
Understanding the Reverse Charge Mechanism for VAT
Alison | 4 days ago
The reverse charge mechanism is a tax collection method used in VAT systems. It shifts the responsibility of calculating, reporting and paying VAT from the seller to the buyer of the goods or services. It applies to cross-border EU transactions, specific services, intra-community acquisitions, construction services, and goods identified as prone to VAT fraud, with the UK operating its own domestic reverse charge rules post-Brexit.
