Reverse charge
Reverse charge is the rule by which the buyer declares the VAT instead of the seller. It applies, for example, when a company from another EU country with a valid VAT number buys a service. The invoice goes out without VAT and with the reverse charge mention.
Legal basis
For services between businesses of different EU countries it is set by article 196 of Directive 2006/112/EC. In Spain it is included in article 84 of Law 37/1992 on VAT.
Related terms
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