Intracom VAT summary

Bunny provides a monthly Intracom VAT report for EU based sellers

The Intracom VAT summary is a monthly report that outlines the invoices issued for sales to businesses in EU countries outside the seller’s home country.

These transactions are zero-rated for VAT under the reverse charge mechanism, meaning no VAT is charged by the seller.

The report includes key details such as the total invoice amount, the buyer's business name, VAT registration number, and country. Any credit notes issued during the reporting period are also accounted for, with their values deducted from the total invoiced amount.

To ensure that tax numbers are validated and tax amounts are calculated correctly you will need to install our Simple Tax plugin.

Intracom VAT summary

Intracom VAT (Intra-Community VAT) refers to the Value-Added Tax (VAT) that applies to transactions between businesses in different EU member states. This system is designed to facilitate cross-border trade within the EU's single market.

Reverse taxation, commonly known as the reverse charge mechanism, is a system where the responsibility for reporting and paying VAT shifts from the seller to the buyer. Instead of the seller charging VAT and remitting it to the tax authorities, the buyer must self-assess and report the VAT in their own country as both input VAT (reclaimable) and output VAT (payable).