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Erroneous application of reverse charge – recovery of VAT paid as a refund

  • The taxpayer is seeking clarification on the recovery of incorrectly paid VAT under the reverse charge mechanism.
  • The taxpayer had contracted a company for renovation and expansion works in their buildings.
  • Tax authorities found that several services were incorrectly invoiced under the reverse charge mechanism.
  • The taxpayer received assessment notices for each year, with penalties imposed for some services but not for others.
  • The contractor has already paid the assessed VAT.
  • The taxpayer recorded the invoices in their purchase and sales registers.
  • The taxpayer is subject to the prorated VAT mechanism.
  • The taxpayer wants to know how to recover the VAT charged by the contractor, which has already been paid to the tax authorities.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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