Reverse Charge on EU VAT

When the European Union Value Added Tax system was reformed for the launch of the single market in 1993, the Reverse Charge mechanism was created to help simplify the VAT reporting across the 28 member states. In simple terms, the Reverse Charge moves the responsibility for the recording of a VAT transaction from the seller to the buyer of a good or service.EU VAT does not apply in the following third territories : the Island of Heligoland, the territory of Büsingen, Ceuta, Melilla, Livigno, Campione d’Italia and the Italian waters of Lake Lugano (territories which do not form part of the EU customs territory); Mount Athos, the Canary Islands, the French overseas departments, the Åland Islands and the Channel Islands (territories which form part of the EU customs territory). In accordance with the Treaty, VAT also does not apply in Gibraltar or the part of Cyprus which is not under the effective control of the government of the Republic of Cyprus. These regions are treated as third territories.Since the Principality of Monaco, the Isle of Man and the United Kingdom’s sovereign base areas of Akrotiri and Dhekelia are not regarded as non-EU countries, VAT applies there. http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/rates/index_en.htm