What is the reverse charge mechanism? |
|
When a person makes an Intra-community acquisition of goods, the net value of the goods must be reported in Box 3, with the relative VAT due on such acquisition at the applicable rate of 18%, 5% or Nil (if an exempt good) reported in Box 6. Reporting the intra-community acquisition in Box 3 and the applicable amount of VAT in Box 6 as output tax makes the person liable to VAT, but the same value and tax may be reported as an expense and related input tax subject to the normal rules of credit for input tax (i.e. box 9 and 10) The same applies for goods and services received from EU or from a country outside the EU when these are taxable in Malta. |
We are hiring!
Pricing
We assess and understand your situation free of charge and then propose a fixed price agreement. Unlike time-billing, which leaves you with a big unknown, a fixed price agreement will lend more clarity to our relationship with you.Read more.