Who should pay VAT or GST?

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Who should pay VAT or GST?

In principle, the supplier of a good or service is required to pay the VAT it charged to and received from its customer to the competent tax authorities. However, in specific situations and depending on the jurisdiction, a so-called "reverse charge mechanism" may apply, under which the customer rather than the supplier is required to report the VAT to the competent tax authorities. If the customer is normally entitled to a full recovery of the VAT it incurred on its purchases, he will normally be allowed to recover the reverse charged VAT as well.

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Page contributors

link=http://www.pwc.nl www.pwc.nl
Bertjan Janzen
Tax Partner
Tim Kok
Senior Manager Indirect Taxes
Ad van Doesum
VAT Adviser / Professor
PwC / Universiteit Maastricht

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