Upon entering the European Union, the Republic of Croatia as the twenty-eighth member became a unique part of the European market which resulted in numerous changes in conducting business with companies within a single market and with companies from the so called “third countries”. On the same day it joined the EU the new VAT Act entered into force pursuant to the EU acquis and to EU Directives which regulate the taxation of the value added tax. The new VAT Act in the system of taxation within the European market introduced a term “reverse charge”. Namely, the mechanism of “reverse charge” is applied for the procedure of calculation of the VAT for any received services from the EU and for the invoices receivable for legal or physical entities in the country and the EU. The aim of this paper is to demonstrate how the “reverse charge” is applied in practice and how it can be registered on certain forms in a practical example of the service company “Autotrip Ltd.”. Specificities of the trading company “Autotrip Ltd.” itself came to life upon joining the EU when it started business with the agency “Booking.com” and calculating and doing accounts with the “reverse charge”. Prior to joining the EU the taxation place was the same as the service provider and upon joining the EU the taxation place became the same as the service recipient. After joining the EU, the Republic of Croatia joined the VIES system which offers an insight into who is the tax payer, or who is not, in the area of the entire EU. General principle of taxation is also applied to business with the so called “third countries”, but the business partners from those countries must bring a physical certificate on their tax status and the change occurs in term transaction with the EU, import and export are not used anymore opposed to new terms supply of goods and acquisition of goods.