FREQUENTLY ASKED QUESTIONS/VAT - What is the reverse charge mechanism?/


What is the reverse charge mechanism?

In the event of an intra-Community acquisition, the reverse charge mechanism will normally apply, whereby the applicable VAT is paid by the purchaser based in France and not be the seller.

The seller will issue the invoice exclusive of VAT and the buyer will calculate and pay the requisite amount to the state. This mechanism permits foreign companies which provide goods or services to France to not have to incorporate there to file VAT tax returns.

alf assists you in registering your company with VAT. To discover our offer, please visit our VAT registration page.

Read more:

A clear introduction to VAT

How to get a VAT refund

How intra community acquisitions affect your VAT

Why resort to a tax agent?