Upon entering the European Union and entry of the new VAT Act taxation of transportation of goods is determined that it is different from that was applied by the accession to the European Union. It as was needed to implement the EU Directive governing the taxation of the value added tax in the current law. The biggest change made by the law is the reverse charge mechanism. If the transportation of goods performed taxpayer applies B2B principle of taxation or tax liability is transferred to the recipient's service. The second case is when the transportation of goods is performed by a natural person; then we apply the principle of B2C or service which is taxed depending on whether the transport of goods is within or outside the EU. In the case that the service is performed within the limits of the EU, it is taxed at the place of the beginning of transportation, and if it is the case that the service is performed outside the EU, it is taxed in proportion to the traveled kilometers. The aim of this paper is to show of the service company Visa Promet Ltd in a practical example; how reverse charge works in practice and show how it is recorded from the accounting aspects. By joining the EU the company has facilitated business by introducing a term reverse charge. In fact, before joining the EU Visa Promet Ltd and all other companies involved in the transport of goods are charged VAT according to mileage in each country. In dealing with third countries same principle is applied, but companies can’t check the tax status of entrepreneurs from third countries. However, they should submit a certificate of their tax status. By joining the EU, Croatia has joined the VIES system. The system checks the tax status of companies from member states.