diff --git a/js/annotations.js b/js/annotations.js
index 582358c..5ca12ee 100644
--- a/js/annotations.js
+++ b/js/annotations.js
@@ -579,8 +579,8 @@
 				linkType = (linkedTo instanceof H.Point) ? 'point' : (linkedTo instanceof H.Series) ? 'series' : null;
 
 				if (linkType === 'point') {
-					options.x = linkedTo.plotX + chart.plotLeft;
-					options.y = linkedTo.plotY + chart.plotTop;
+					options.x = xAxis.toPixels(linkedTo.x);
+					options.y = yAxis.toPixels(linkedTo.y);
 					series = linkedTo.series;
 				} else if (linkType === 'series') {
 					series = linkedTo;
@@ -601,6 +601,12 @@
 			x = (defined(options.xValue) ? xAxis.toPixels(options.xValue /* + xAxis.minPointOffset */) : options.x);
 			y = defined(options.yValue) ? yAxis.toPixels(options.yValue) : options.y;
 
+			if (chart.inverted) {
+				var tempX = x;
+				x = y;
+				y = tempX;
+			}
+
 			if (isNaN(x) || isNaN(y) || !isNumber(x) || !isNumber(y)) {
 				return;
 			}
@@ -840,13 +846,24 @@
 					if (!chart.isInsidePlot(clickX - chart.plotLeft, clickY - chart.plotTop)) {
 						return;
 					}
-					var note = chart.activeAnnotation;
-							
-					var x = note.options.allowDragX ? event.clientX - note.startX + note.group.translateX : note.group.translateX,
+					var note = chart.activeAnnotation,
+						x,
+						y;
+
+					if (chart.inverted) {
+						// Screen X is Y axis and screen Y is X axis.
+						x = note.options.allowDragY ? event.clientX - note.startX + note.group.translateX : note.group.translateX;
+						y = note.options.allowDragX ? event.clientY - note.startY + note.group.translateY : note.group.translateY;
+						note.transX = y;
+						note.transY = x;
+					} else {
+						// Screen X is X axis and screen X is X axis.
+						x = note.options.allowDragX ? event.clientX - note.startX + note.group.translateX : note.group.translateX;
 						y = note.options.allowDragY ? event.clientY - note.startY + note.group.translateY : note.group.translateY;
-				
-					note.transX = x;
-					note.transY = y;
+						note.transX = x;
+						note.transY = y;
+					}
+
 					note.group.attr({
 						transform: 'translate(' + x + ',' + y + ')'
 					});
@@ -877,6 +894,7 @@
 				event.stopPropagation();
 				event.preventDefault();
 				if (chart.activeAnnotation && (chart.activeAnnotation.transX !== 0 || chart.activeAnnotation.transY !== 0)) {
+					// `transX` and `transY` are set taking in acount `chart.inverted`.
 					var note = chart.activeAnnotation,
 						x = note.transX,
 						y = note.transY,
@@ -891,7 +909,7 @@
 						yAxis = note.chart.yAxis[note.options.yAxis],
 						newX = xAxis.toValue(x),
 						newY = yAxis.toValue(y);
-					
+
 					if (x !== 0 || y !== 0) {
 						if (allowDragX && allowDragY) {
 							note.update({