Should I Charge Tax On Invoices Service Business

Last checked: 28/10/2021

Charging and deducting VAT

Charging VAT

When VAT is charged on appurtenances or services the term 'taxable supplies' may exist used.

If you are in business and you supply goods or services, you unremarkably accept to:

annals with the tax regime in the EU country where your business is established;
charge your customer VAT and account for this to the taxation authorities.

Money does not actually have to change easily for VAT to be due — you may also take to accuse VAT (usually on market value) on appurtenances and services that:

you exchange for other appurtenances or services;
you requite abroad for costless;
you acquire for your own private consumption.

Deducting VAT

If you are in business, y'all can usually deduct the VAT you accept paid on your own concern purchases from the VAT you lot charge your customers; you then but need to pay the difference to the tax authorities, and study these amounts to them in your periodic VAT return.

Sometimes, the VAT your business concern has paid exceeds the VAT you lot have charged to your customers. If then, the taxation authorities should reimburse or credit you with the difference.

Check how this procedure works in each country:

Choose state:

Austria at en
Belgium be en
Republic of bulgaria* bg
Croatia cr en
Republic of cyprus* cy
Czechia* cz
Kingdom of denmark* dk
Estonia* ee
Finland* fi
France fr en

Germany* de
Greece* gr
Hungary* hu
Ireland* ie
Italy it en
Latvia lv en
Liechtenstein* li
Lithuania* lt
Luxembourg* lu
Malta mt en

Netherlands* nl
Norway no en
Poland pl en
Portugal pt en
Romania* ro
Slovakia sk en
Slovenia* si
Spain* es
Sweden se en

* Data non still available.

Notwithstanding take questions?

VAT on invoices

Normally, if you are registered for VAT and you make sales to other businesses, y'all must issue a VAT invoice — either in paper or electronic form. VAT is commonly added to the price of the appurtenances or services on your invoice.

Your VAT identification number must be shown on all invoices you lot give to customers, every bit well equally the corporeality of VAT being charged and other standard items.

Eu VAT invoicing rules
Invoicing rules applicative in EU countries

Exceptions

There are some exceptions to this rule.

For example, if y'all provide a service to another business, that is not located in the same Eu state equally your visitor is based, the VAT will not announced on your invoice. This does not mean the service is not discipline to VAT, just that the VAT would be accounted for and paid directly by your business partner in the other Eu state.

Similarly, if yous make an consign of goods to a not-European union land, your invoice volition not testify VAT. Normally, the buyer in the non-Eu country will be bailiwick to importation rules of its state.