Businesses in the EU buying products from companies in other EU member states are subject to different VAT requirements and the reverse charge mechanism.
This guide explores these requirements and the mechanism where buyers are concerned. Note that this guide only explains the VAT requirements regarding the purchase, not sales, of products.
Methodology
In order to research this article, we used the following sources:
a. Cross-border VAT
b. Where to tax?
c. Reverse charge on EU VAT
d. Purchases of goods and services in the EU
e. Reverse VAT Calculator – Calculation Formula
f. VAT rules and rates
g. Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax
h. VAT returns
Continue reading EU VAT when buying products from other member states