Services performed between businesses (B2B services) is, in principle, taxed at the customer's place of establishment (there are several exceptions to this rule), while services supplied to private individuals (B2C services) are taxed at the supplier's establishment. This rule is also applicable for supplying services to countries outside the EU. This means that if your company in the Netherlands provides services to another company in France, French VAT must be charged. When a company in Italy is providing services to you in the Netherlands, you have to declare the Dutch VAT. If your company in the Netherlands is supplying services to a private individual in Germany, Dutch VAT will be charged.

The second change is regarding the VAT refund. If you pay VAT in another EU country, this paid VAT can be retrieved in the Netherlands.

In your administration you will experience some changes because of this. In the above example with French VAT being charged, you can send an invoice without VAT and note that the VAT will be charged in France. All services received or supplied within the EU have to be declared quarterly (or monthly if the quarterly turnover exceeds € 100,000).

If you are performing services outside of the EU, you do not have to charge VAT or include these services in your VAT administration. The tax authorities of that country can inform you if you have to file a VAT return for these services. In the reversed situation where your company is receiving a service from a company outside the EU, you have to include this service in your VAT administration since Dutch VAT is being charged and also subtracted as paid VAT.

If you need assistance with your VAT administration, we will be happy to assist you.