Chapter 4 - Specific Obligations to Account for Tax

Article 48
Reverse Charge^[20]

If the Taxable Person imports Concerned Goods or Concerned Services for the purposes of his Business, then he shall be treated as making a Taxable Supply to himself, and shall be responsible for accounting for the Due Tax on that Supply and complying with all other Tax obligations arising, [with the exception of issuing a Tax Invoice to himself.] ^[G33]^[21]
As an exception to Clause 1 of this Article, in case the final destination of the Goods when entering the State is another Implementing State, the Taxable Person shall pay the Due Tax on Import of Concerned Goods pursuant to the mechanism specified by the Executive Regulation of this Decree-Law.
If a Registrant makes a Taxable Supply in the State to another Registrant of any crude or refined oil, unprocessed or processed natural gas, or [Pure] ^[G34] Hydrocarbons, and the Recipient of these Goods intends to either resell the purchased Goods as crude or refined oil, unprocessed or processed natural gas, or [Pure] ^[G35] Hydrocarbons, or use these Goods to produce or distribute any form of energy, the following rules shall apply:
1. The Registrant making the supply shall not account for Tax on the value of the supply of the Goods referred to in this Clause.
2. The Recipient of the Goods shall calculate the Tax on the value of the Goods supplied to him and shall be responsible for all applicable Tax obligations and for calculating the Due Tax in respect of such supplies.
The provisions of Clause 3 of this Article shall not apply in any of the following situations:
1. Where, before the date of supply, the Recipient of Goods has not provided a written declaration to the supplier that his acquisition of the Goods is for the purpose of resale, [or use for production or distribution of any form of energy] ^[G36].
2. Where, before the date of supply, the Recipient of Goods has not provided a written declaration to the supplier that he is a Registrant and the supplier has not verified the Tax Registration of the Recipient of Goods by means approved by the Authority based on the data provided in the declaration.
3. Where the Taxable Supply would be subject to Tax at the zero rate in accordance with Clause 1 of Article 45 of this Decree-Law.
4. Where the Taxable Supply includes a supply of Goods or Services other than the Goods referred to in Clause 3 of this Article.
Where a Recipient of Goods of any crude or refined oil, unprocessed or processed natural gas, or [Pure] ^[G37] Hydrocarbons declares in writing to the supplier that he is a Registrant for the purposes of applying Clause 3 of this Article, the following shall apply:
1. The supplier shall not be liable for accounting for the Tax in relation to the supply unless he was aware or supposed to be aware, that the Recipient was not a Registrant at the date of supply.
2. The Recipient shall be liable for the calculation of Due Tax in respect of the supply.
If the supplier mentioned in Paragraph (a) of Clause 5 of this Article is supposed to be aware that the Recipient of Goods was not registered at the date of supply, the supplier and the Recipient of Goods shall be jointly and severely liable for any Due Tax and relevant penalties in respect of the supply.
The Executive Regulation of this Decree-Law shall specify:
1. Conditions and instances where the mechanism in Clause 1 of this Article applies.
2. Additional obligations related to record keeping in relation to accounting for Tax according to the mechanism in Clause 1 of this Article.
[The Cabinet may issue a decision specifying other Goods or Services that are subject to the reverse charge and specify the relevant conditions and provisions.] ^[G38]