- The recipient of goods and services can be designated as the person responsible for paying and calculating value-added tax in certain cases.
- This mechanism is called reverse charge mechanism.
- The reverse charge mechanism simplifies rules and prevents tax evasion and avoidance in specific sectors and transactions.
- Taxpayers identified for VAT purposes who supply goods and services listed in Article 76a of the VAT Act must apply the reverse charge mechanism.
- Taxpayers identified for VAT purposes who receive these goods and services must calculate and pay VAT instead of the suppliers.
- Taxpayers who supply goods or services listed in Article 76a must submit a report on supplies to the tax authority by the last working day of the month following the calendar month in which they make these supplies.
Source: racunovodja.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
