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Tax

What Is Reverse Charge?

The buyer, not the seller, accounts for VAT on certain cross-border B2B supplies.

Detailed Explanation

Requires valid VAT IDs and correct invoice wording. Seller may issue a zero-VAT bill.

Example

A UK company self-accounts for VAT on EU consulting via reverse charge.

Why It Matters

Misapplication causes double tax or missed liability.

Related Resources

Related Tax Terms

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