Home > The Newbie Zone > Questions and Answers

Do I have to charge VAT for Europe customer if business not from EU (7)

07-25-2020 05:46 AM #1 burgerbiker (Member)
Do I have to charge VAT for Europe customer if business not from EU

New Baby question...Do I have to charge VAT for Europe customers if my business not from EU

07-26-2020 02:45 AM #2 jeremie (Moderator)

Hey,

You do not define what type of services you are selling... We do not know where you business is based... (some countries have tax agreements with EU, some not)
You should check that with an accountant to have a clear answer.

07-26-2020 04:07 PM #3 twinaxe (Senior Moderator)

I am by far no expert but I would say it´s also a difference if you invoice a customer or another business.

07-26-2020 08:44 PM #4 adxadcom (Senior Member)

hi !
if your company is registered in EU and you have VAT and you sell to the EU same country resident with VAT - you include VAT into the invoice, the seller have to pay it

if your company is registered in EU and you have VAT and you sell to the EU not the same country resident with VAT - you do not include VAT into the invoice, the buyer is in charge of handling VAT

if your company is registered in EU and you have VAT and you sell to another EU resident (not the same country as yours) without VAT - you include VAT into the invoice, the seller have to pay it

if your company is registered not in EU and you don't have VAT and you sell to the EU resident with VAT - you don't pay VAT, if that's non obliged in your country. The buyer the buyer is in charge of handling VAT

if your company is registered in EU and you have VAT and you sell to the non-EU resident without VAT - you don't include VAT to the invoice, But that's fair only if the buyer is legally an enterprise or enterpreneur, in other case, the VAT needs to be included in the invoice

07-27-2020 10:07 AM #5 burgerbiker (Member)

Thats clear.thx

07-27-2020 12:33 PM #6 twinaxe (Senior Moderator)

if your company is registered in EU and you have VAT and you sell to the EU not the same country resident with VAT - you do not include VAT into the invoice, the buyer is in charge of handling VAT
Yup, then I always invoice $0 VAT and write in the invoice that the beneficiary is responsible for paying the VAT based on the reverse charge procedure.

07-28-2020 11:04 AM #7 matuloo (Legendary Moderator)

Quote Originally Posted by twinaxe View Post
Yup, then I always invoice $0 VAT and write in the invoice that the beneficiary is responsible for paying the VAT based on the reverse charge procedure.
Just to add to this, do not forget to ask for the VAT ID of the client, it HAS to be written on the invoice.

And it's also a good idea to double check the ID is correct, because some people just lie to get the item/service cheaper ... as strange as it sounds, it has happened to me once in the past

Here is a tool where you can check the validity of the ID: https://ec.europa.eu/taxation_customs/vies/

Home > The Newbie Zone > Questions and Answers