A decision defining the categories of supply of goods and
services for which the VAT responsible taxpayer is considered to be
the entity to which the supply is being provided by another
VAT-registered company was published in the Official Gazette
45/2014 and is applicable as of March 5, 2014.
The Decision lists goods and services on which a reverse charge
VAT mechanism is applied as of the aforementioned date and onwards.
It also defines the appropriate steps that the involved parties
need to follow in such transactions. Namely, the provider of the
affected goods/services must indicate that "the VAT liability
is transferred to the recipient of the goods/services according to
article 32, point 1 of the VAT Law" on the invoices issued.
The provider will neither calculate VAT on the outgoing invoice,
nor consider such outgoing VAT in their VAT return. The recipient
of the goods/service, on the other hand, will now be obliged to
calculate and pay the VAT to the Tax Office
