{"id":4428,"date":"2026-04-15T11:52:17","date_gmt":"2026-04-15T11:52:17","guid":{"rendered":"https:\/\/www.brasser-accounting.de\/?post_type=glossar&#038;p=4428"},"modified":"2026-05-12T10:12:58","modified_gmt":"2026-05-12T10:12:58","slug":"reverse-charge-mechanism","status":"publish","type":"glossar","link":"https:\/\/www.brasser-accounting.de\/en\/glossar\/reverse-charge-verfahren\/","title":{"rendered":"Reverse charge procedure"},"content":{"rendered":"<nav class=\"toc\" aria-label=\"Table of Contents\">\n<h2>Table of Contents<\/h2>\n<ul>\n        <li><a href=\"#einleitung\">Brief definition<\/a><\/li>\n        <li><a href=\"#grundlagen\">Basics<\/a><\/li>\n        <li><a href=\"#recht\">Legal framework<\/a><\/li>\n        <li><a href=\"#einordnung\">Classification<\/a><\/li>\n        <li><a href=\"#tools\">Requirements<\/a><\/li>\n        <li><a href=\"#schritte\">Procedure<\/a><\/li>\n        <li><a href=\"#praxis\">Practice<\/a><\/li>\n        <li><a href=\"#fehler\">Sources of error<\/a><\/li>\n        <li><a href=\"#faq\">FAQ<\/a><\/li>\n        <li><a href=\"#fazit\">Conclusion<\/a><\/li>\n      <\/ul>\n<\/nav>\n\n<section id=\"einleitung\">\n        <div class=\"snippet info\">\n          <p><strong>Reverse charge procedure<\/strong> is a VAT procedure where the tax liability is transferred from the supplier to the recipient of the service. The tax treatment is regulated in the <a href=\"\/en\/glossary\/financial-accounting\/\">Financial accounting<\/a> as shown.<\/p>\n        <\/div>\n      <\/section>\n\n      <section id=\"grundlagen\">\n        <h2>Basics<\/h2>\n        <p>As a rule, the performing contractor owes the VAT. Under the reverse charge procedure, this obligation is transferred to the recipient of the service. They must calculate the VAT themselves and account for it in their bookkeeping.<\/p>\n        <p>The correct <a href=\"\/en\/glossary\/accounting-entry\/\">Account assignment<\/a> as well as the creation of a suitable <a href=\"\/en\/glossary\/booking-entry\/\">Booking entry<\/a> are crucial for the correct mapping.<\/p>\n      <\/section>\n\n      <section id=\"recht\">\n        <h2>Legal framework<\/h2>\n        <p>The application of the reverse charge mechanism is regulated by law. It only applies in expressly specified cases, for example, for certain cross-border services or special domestic situations.<\/p>\n        <div class=\"snippet tip\">\n          <p><strong>Note:<\/strong> Whether the procedure is to be applied depends on the specific claim and the legal requirements.<\/p>\n        <\/div>\n      <\/section>\n\n      <section id=\"einordnung\">\n        <h2>Systematic classification<\/h2>\n        <p>The reverse charge mechanism specifically concerns the VAT treatment of intra-Community and outbound supplies and is closely linked to:<\/p>\n        <ul>\n          <li><a href=\"\/en\/glossary\/umsatzsteuer-voranmeldung\/\">VAT Return<\/a><\/li>\n          <li>Current financial accounting<\/li>\n          <li>Tax account reconciliation<\/li>\n        <\/ul>\n        <p>The effects are shown directly in the monthly or quarterly report.<\/p>\n      <\/section>\n\n      <section id=\"tools\">\n        <h2>Requirements<\/h2>\n        <ul>\n          <li>Checking the place of performance<\/li>\n          <li>Determination of statutory applicability<\/li>\n          <li>Correct invoice issuing<\/li>\n          <li>Proper accounting record<\/li>\n        <\/ul>\n      <\/section>\n\n      <section id=\"schritte\">\n        <h2>Typical procedure<\/h2>\n        <ol>\n          <li>Check whether reverse charge is applicable<\/li>\n          <li>Recording of revenue excluding VAT<\/li>\n          <li>Self-assessment of VAT by the recipient of the service<\/li>\n          <li>Accounting for VAT and input tax<\/li>\n        <\/ol>\n      <\/section>\n\n      <section id=\"praxis\">\n        <h2>Practical relevance<\/h2>\n        <p>A faulty application can lead to deviations in the <a href=\"\/en\/glossary\/umsatzsteuer-voranmeldung\/\">VAT Return<\/a> Therefore, careful examination and accounting treatment are required.<\/p>\n      <\/section>\n\n      <section id=\"fehler\">\n        <h2>Typical sources of error<\/h2>\n        <div class=\"snippet warn\">\n          <ul>\n            <li>Incorrect application of the procedure<\/li>\n            <li>Incorrect accounting classification<\/li>\n            <li>Unreconciled tax accounts<\/li>\n          <\/ul>\n        <\/div>\n      <\/section>\n\n      <section id=\"faq\">\n        <h2>FAQ<\/h2>\n        <div class=\"snippet info\">\n        <h3>Was ist das Reverse-Charge-Verfahren?<\/h3>\n        <p>The tax liability is transferred from the performing entrepreneur to the recipient of the service.<\/p>\n      <\/div>\n\n        <div class=\"snippet info\">\n        <h3>Does the procedure always have to be applied?<\/h3>\n        <p>No, it only applies in legally defined cases.<\/p>\n      <\/div>\n\n        <div class=\"snippet info\">\n        <h3>Where does it have an effect?<\/h3>\n        <p>Specifically in financial accounting and VAT pre-registration.<\/p>\n      <\/div>\n      <\/section>\n\n      <section id=\"fazit\">\n        <h2>Conclusion<\/h2>\n        <p>The reverse charge mechanism is a special VAT regulation where the tax liability is transferred to the recipient of the service. Correct accounting implementation is essential for proper financial accounting.<\/p>\n      <\/section>\n\n      <footer class=\"author\">\n        <strong>Author<\/strong>\n        <span>the BAS editorial team<\/span>\n        <span class=\"note\">Services pursuant to \u00a7 6 No. 3 and 4 StBerG, no tax or legal advice.<\/span>\n      <\/footer>\n\n      <p class=\"disclaimer\">\n        Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy\/auditing) and Service Place \u00c5rj\u00e4ng AB (Swedish tax office). BAS exclusively performs services according to \u00a7 6 No. 3 and 4 StBerG and does not provide tax or legal advice.\n      <\/p>","protected":false},"template":"","glossar-kategorien":[20],"class_list":["post-4428","glossar","type-glossar","status-publish","hentry","glossar-kategorien-finanzbuchhaltung"],"_links":{"self":[{"href":"https:\/\/www.brasser-accounting.de\/en\/wp-json\/wp\/v2\/glossar\/4428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brasser-accounting.de\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.brasser-accounting.de\/en\/wp-json\/wp\/v2\/types\/glossar"}],"wp:attachment":[{"href":"https:\/\/www.brasser-accounting.de\/en\/wp-json\/wp\/v2\/media?parent=4428"}],"wp:term":[{"taxonomy":"glossar-kategorien","embeddable":true,"href":"https:\/\/www.brasser-accounting.de\/en\/wp-json\/wp\/v2\/glossar-kategorien?post=4428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}