Reverse charge (or reverse charge) is a VAT enforcement mechanism, introduced by EU legislation, to counter VAT evasion-one of the most evaded taxes in the European landscape.
This accounting mechanism allows the seller to issue an invoice without charging value-added tax, and, correspondingly, the buyer will instead have to incorporate the proper rate into the invoice and make an entry of this document in both the register of issued invoices and the register of purchases, so as to make the effect of the tax neutral.
Extension of reverse charge application
Decree Law 114/2018 provides for the extension until June 30, 2022 of the application of reverse charge for the supply of the following goods and services:
- Cereals and technical plants;
- Certifications for gas emissions;
- Buyer-seller electricity;
- Certification for energy consumption of household appliances (verzi certificate);
- Mobile telephony;
- Microprocessors;
- Tablets and laptops.
The reverse charge remains applicable for the remaining categories, as there is no time limit (waste, timber, land, construction, etc.).
