3 ms·
B2B sales between European countries don't have a VAT.
by tobias3 2y ago
B2B sales between European countries don't have a VAT.
- deleted 2y ago[deleted]
- procaryote 2y agoVAT on b2b sales even within an European country are usually not that important. You add VAT to things you sell (e.g. car repair services), you pay VAT on things you buy (e.g. car parts). If you collected more VAT on sales than you paid on purchases, you owe that to the tax department. It's a bit of book-keeping but doesn't affect your profits directly.
- luckylion 2y agoThey do, it's just that many choose the reverse charge mechanism, so the recipient of the services or goods is responsible for paying the VAT to his tax authority. It makes things easier, it doesn't remove VAT.
- beejiu 2y agoFor almost all B2B cross-border transactions between two VAT registered entities, the reverse charge is mandatory, not something that you can choose to opt in to.
- orwin 2y agoAre you sure? If a software company pay it's contributor dinners in Bruxelles/Milan/Lisbon, is the reverse charge mandatory too? Because it seemed like business as usual each time I went on business trip.
- tobias3 2y agoYou can see that it is already too complicated for the Americans as is. Please don't confuse them with accounting fictions.
- alexanderchr 2y agoIn practice, when you buy something with VAT reverse charged, you normally declare the VAT to be paid and immediately claim it back on the same declaration. So in the net you pay nothing, but the VAT is of course still there.
- deleted 2y ago[deleted]