# Reverse charge

VAT mechanism where the buyer accounts for VAT instead of the seller.

## Definition

VAT mechanism where the buyer accounts for VAT instead of the seller.

## Explanation

Requires correct VAT category and exemption/legal reason information.

Often relevant for cross-border B2B invoices.

## Related resources

- [VAT category codes](/resources/code-lists/vat-category-codes)

## Related terms

- [VAT ID](/resources/glossary/vat-id): Tax identifier used for VAT reporting and cross-border trade in the EU.
- [Tax category](/resources/glossary/tax-category): Classification of tax treatment (e.g., standard, exempt, zero-rated).
- [Code list](/resources/glossary/code-list): A predefined set of allowed codes/values (e.g., VAT category, payment means).