According to the general B2B rule, any business resident outside the Netherlands supplying services to a Dutch based customer will not charge any VAT and the transaction will be reverse charged by the customer.
Do I have to charge VAT on services to overseas customers UK?
If you’re in the UK and the place of supply of your service is in an EU country, you do not pay UK VAT. But for some supplies, you may need to register and account for VAT in the country of supply. You must check with the tax authority in that country to find out how to treat the services you’re supplying.
Are services subject to VAT?
VAT applies to practically all sales of services and imports, as well as to the sale, barter, exchange, or lease of goods or properties (tangible or intangible). The tax is equivalent to a uniform rate of 12%, based on the gross selling price of goods or properties sold, or gross receipts from the sale of services.
Do I charge VAT on services to EU from UK?
If you provide services to customers outside the EU, you usually do not charge VAT. However, if the service is used in another EU country, that country can decide to charge the VAT. You may still deduct the VAT that you paid on related expenses, such as for goods or services purchased specifically to make those sales.
How are services purchased from outside the UK subject to VAT?
Most services that are purchased from overseas suppliers are subject to VAT using a mechanism called the Reverse Charge (SERVICES TAX on CUFS). What is the Reverse charge?
Do you need to mark VAT on place of supply?
You will not need to charge VAT and can mark this on box 6 of your VAT return. If your UK business is providing services to the US and the place of supply is the UK, then you will need to account for VAT and charge it at the normal rate. VAT on services – place of supply examples
Where does EU VAT go after Brexit?
The purchase of these services from the EU is still treated as outside the scope of UK VAT and subject to the reverse charge. The purchase would be recorded in box 7 on the VAT return within the UK.
How can I find out more about the new VAT rules?
If a UK business supplies digital services to a business customer in the EU, this would fall under the reverse charge and the EU customer should account for the VAT in their country. The invoice should state that “the supply is subject to the reverse charge”. How can I find out more about the post Brexit changes to VAT?
