Consequences of Forgetting to Self-Assess VAT: Penalties, Risks, and Legal Challenges

• Reverse charge is when the customer pays VAT directly to tax authorities
• Failure to declare reverse charge can result in heavy penalties
• It is important for businesses to understand and apply reverse charge rules correctly
• Penalties for failing to self-assess VAT can include financial fines, increased risk of tax audits, and damage to reputation
• Example of a Belgian company facing penalties for not self-assessing VAT on an intra-Community acquisition
• Penalties can be challenged based on the proportionality between the fault and damage caused to the State

Source: vatdesk.eu

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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