In the Netherlands we have various VAT reverse charge schemes that prescribe that it is not the supplier or service provider, but the customer who pays the VAT. If the customer in question is entitled to deduction of input tax, he can also deduct the VAT in the same declaration. On balance, the application of the reverse charge mechanism will not lead to payment of VAT. If the customer has no or limited right to deduct, VAT must actually be paid. There is a right to deduct if and insofar as taxed services are performed.
Source: BDO NL
