Handling VAT reverse charges (Sweden)
Normally, the supplier of a service must provide an accounting to the
tax authorities for any VAT due on the service. However, for some services, if the recipient
of the service is in an EU member country and the supplier is in another country, the
recipient, rather than the supplier, must account for any VAT due on the service. This tax
shift is referred to as a VAT reverse charge.
VAT is not charged by the vendor; however, the invoice must show the value of VAT due under the reverse charge rules. The invoice also must state that the reverse charge applies, and that the trading account customer is required to account for the VAT.
The reverse charge tax must be calculated as a percentage of each posting. One tax account is posted as a debit and another tax account is posted as a credit. The reverse charge is used to create offsetting entries for goods between countries, when you want to record the transaction, but not make a payment.