For our website I need a translation for the expression "BTW verlegd" (Nederlands / Dutch). When a company (seller) in the EU sells something to a foreign EU company (foreign buyer), the VAT can be moved over. The seller doesn't calculate VAT, so in effect it's VAT free. The foreign company has to pay VAT in its own country, but maybe a lower percentage or maybe it can deduct it somehow. I'm not sure how that works out, but that is not what this question is about.
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2A simple google reveals "VAT shifted" and "VAT reverse charge"– mplungjanCommented Nov 13, 2013 at 10:37
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VAT is paid at the point of sale to the end consumer, so it's not paid for business-to-business transactions. I don't think there is anything to "move" or "shift"; but if you do need something, I would suggest transferred.– Andrew Leach ♦Commented Nov 13, 2013 at 10:40
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1 Answer
In principle, a foreign company that is liable for VAT in the Netherlands, should invoice Dutch VAT. However, if the client is a company based in the Netherlands, no VAT may be charged on the invoice. In that case the reverse charge rule of article 12, paragraph 3, of the Dutch VAT Act is applicable. Then the invoice should state:
“VAT shifted to recipient (art. 12 3 Wet OB 1968)”.
The liability for the VAT shifts to the client, who can usually deduct the VAT as input tax on his VAT return.
answered Nov 13, 2013 at 10:42
