What is omvendt betalingspligt (reverse charge)?

In short

Omvendt betalingspligt (reverse charge) means the buyer — not the seller — must settle the VAT. It typically applies to services bought abroad and certain goods like mobile phones between businesses.

In practice

In practice the seller invoices without VAT, and you calculate Danish VAT on the purchase yourself — deductible at the same time if used for VAT-liable activity. A classic place to make mistakes.

Related terms

• Moms (Danish VAT)
• Salgsmoms (output VAT)
• See every term in the dictionary

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