Whatever the type of service rendered, VAT is due in the country where the buyer is located. The latter can auto- liquidates intra-community VAT in his own country. Please note, specific rules apply to certain services. Thus, for example, the services provided on a building are subject to the VAT of the country in which the building is located. It is therefore important to check if you are not subject to a derogatory rule.
Example:
You use the services of a German law firm for your company located. You provide this firm with an intra-community VAT number and you apply Belgian VAT. You auto-liquidate your VAT in your Belgian declaration.
For the Services
For services provided for the benefit of an individual, the applicable VAT is in principle that of the place of establishment of the provider. There are many exceptions to this rule (rental of means of transport, cultural services, telecommunications, electronic services, etc.). For the proper calculations you can are use of the sales tax calculator now.
Example:
You provide tax advisory services to an individual located in France. You edit an invoice mentioning Belgian VAT. As a reminder: sales of intra-community services are subject in each country to a specific declaration obligation, in addition to that relating to VAT.
Intra-community VAT for online sales
If the sale is made for the benefit of a company subject to VAT, you must proceed as for the delivery of a good. In this case, you therefore issue an invoice without VAT and you carry out the reverse charge in your Belgian VAT return.
- If the sale is made for the benefit of a non-taxable person (an individual) , you apply the VAT rate applicable in the country of origin and you will pay this amount to the tax authorities of this country.
- This rule applies only up to a certain turnover achieved in the country of destination. The threshold in question varies from 35,000 to 100,000 € depending on the country (France: 35,000 €). Beyond this threshold, you must register for VAT in the country concerned and invoice with VAT in the country of destination. You always have the option of registering below this threshold.
Note: the European directive of 5 December 2017 provides for a lowering of this threshold to 10,000 € . It will enter into force in France on January 1, 2021 (threshold already in force for the provision of services by electronic means).
An example:
A paid support platform in French for children online based in Italy
This paid platform delivers intra-community services electronically. These are, in principle, subject to VAT in the country of consumption from the first euro. (This is the European Directive 2009/132 / EC.)
Each country can adapt this rule. In France, since 1 st January 2019, you must have reached the threshold of 10,000 € of turnover in France to be subject to this requirement.