# EU reverse charge mechanism

*Last updated: 2026-06-26*

> A UK-based business hires a French consultant and receives an invoice with no VAT – the EU reverse charge mechanism applies: the customer, not the French supplier, accounts for VAT directly with its own tax authority.

A UK-based business hires a French consultant and receives an invoice with no VAT – the EU reverse charge mechanism applies: the customer, not the French supplier, accounts for VAT directly with its own tax authority. The mechanism covers specific cross-border B2B supplies of goods and services between EU member states and is reported through the recipient's standard VAT return. Businesses with full input tax recovery rights offset the self-assessed tax in the same return, resulting in no net cash outflow. The scheme reduces the administrative burden for cross-border suppliers and is a key instrument against VAT carousel fraud in the single market. It is distinct from import VAT, which arises on goods crossing the EU's external customs border from third countries.

**Source:** [https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32006L0112](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32006L0112)

## Quick Facts

| Property | Value |
|---|---|
| Term | EU reverse charge mechanism |
| Language | EN |
| Word count | 122 |
| Last updated | 2026-06-26 |
| Source | https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32006L0112 |

---

*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/eu-reverse-charge-mechanism](https://www.freight-academy.com/en/glossary/eu-reverse-charge-mechanism)*

*Markdown mirror: [https://www.freight-academy.com/api/md/glossary/en/eu-reverse-charge-mechanism](https://www.freight-academy.com/api/md/glossary/en/eu-reverse-charge-mechanism)*

*JSON summary: [https://www.freight-academy.com/api/v1/glossary/eu-reverse-charge-mechanism/llm-summary?lang=en](https://www.freight-academy.com/api/v1/glossary/eu-reverse-charge-mechanism/llm-summary?lang=en)*