How to declare reverse charge of VAT?

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Note that reverse charge does not necessarily apply to land-related services, so if your business involves providing services related to a specific piece of land or property , you should be careful.

How to declare reverse charge of VAT?
If a business purchases services that are subject to a reverse charge, the estonia phone number example output and input tax should be included in the VAT return, with the effect that the business has claimed VAT on both sales and purchases, so the net VAT impact is zero (depending on the business's VAT return profile). On the UK VAT return, the VAT amounts are claimed in Box 1 (VAT on sales) and Box 4 (VAT on purchases), and the net amounts are claimed in Box 6 (Net sales) and Box 7 (Net purchases). Although the format of the VAT return varies, similar principles exist around the world .

What types of services does reverse charging apply to?
To answer this question, it is first necessary to clarify which services the reverse charge of VAT does not generally apply to. In the UK/EU, this includes the following:



Land and real estate related services such as construction, architects, demolition
Restaurants and Hotels
Cultural services such as theater and cinema entrances
Event Entrance Fee
Exempt services, such as financial services , insurance
Out-of-scope services (e.g. cashier arrangements)
Why is reverse charge of VAT important?