{"@context":"https://schema.org","@type":"DefinedTerm","name":"Reverse charge mechanism","description":"At the moment a supply is made, the reverse charge mechanism shifts VAT liability from the supplier to the recipient: instead of the seller collecting and remitting tax, the buyer self-assesses and reports it directly to the tax authority. Widely applied in cross-border B2B transactions within the EU – covering services, goods, and construction work – it also extends to specific domestic sectors prone to carousel fraud, such as scrap metal trading. Where the recipient holds full input tax recove","inDefinedTermSet":{"@type":"DefinedTermSet","name":"Frachtportal Logistics Glossary","url":"https://www.freight-academy.com/en/glossary"},"url":"https://www.freight-academy.com/en/glossary/reverse-charge-mechanism-2","inLanguage":"en","dateModified":"2026-06-26T17:13:25.420318","citation":"https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32006L0112","markdownMirror":"https://www.freight-academy.com/api/md/glossary/en/reverse-charge-mechanism-2","provider":{"@type":"Organization","name":"Frachtportal","url":"https://www.freight-academy.com"},"quickSummary":"Reverse charge mechanism · At the moment a supply is made, the reverse charge mechanism shifts VAT liability from the supplier to the recipient: instead of the seller collecting and remitting tax, the buyer self-assesses and reports it directly to the tax authority. · Quelle: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32006L0112"}