Reverse charge is a particular accounting procedure regarding VAT; basically, the input VAT is not charged by the supplier (not included in its invoice), instead the client has to "integrate" its invoice and is liable to pay the VAT.
The reverse charge procedure is somewhat confusing and it has changed multiple times throughout the years; it is crucial to treat these invoices properly, as they have to be disclosed separately in the annual VAT return and they have specific bookkeeping features. Read the full article below to understand how to treat the reverse charge procedure and how to avoid unwanted fines and penalties!
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June 2021
AuthorAfter moving back to Italy from the United States in 2013, I realized how much an accounting and tax firm was needed to help expats living in Italy to comply with the local tax regulations. |