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Intra-EU invoice VAT citation
Thread poster: GregSmith
GregSmith
GregSmith
Local time: 06:07
French to English
+ ...
Oct 23, 2014

Just thought I should post this somewhere...

On my invoices for EU countries other than my own (I'm based in France) I use the following citation (after a lot of searching) opposite a 0% VAT figure - and including both my own and the client's VAT number:

VAT subject to the reverse charge procedure, Article 196, European Council Directive 2006/112/EC (Article 262 ter I du Code général des impôts, France)

I have a few multinational clients that ... See more
Just thought I should post this somewhere...

On my invoices for EU countries other than my own (I'm based in France) I use the following citation (after a lot of searching) opposite a 0% VAT figure - and including both my own and the client's VAT number:

VAT subject to the reverse charge procedure, Article 196, European Council Directive 2006/112/EC (Article 262 ter I du Code général des impôts, France)

I have a few multinational clients that seem happy with that.

Comments & other versions welcome. ▲ Collapse
 
Michael Beijer
Michael Beijer  Identity Verified
United Kingdom
Local time: 05:07
Member (2009)
Dutch to English
+ ...
"VAT-exempt: HMRC Reference:Notice 700/1 (Apr 2010)" Oct 23, 2014

Hi Greg,

I live in the UK and don't have to register for VAT (unless I earn above a certain threshold). All my invoices have the following text on them:

VAT-exempt: HMRC Reference:Notice 700/1 (Apr 2010)

However, I just noticed that there has been an update, which might require me to change the above text to:

VAT-exempt: HMRC Reference:Notice 700/1 (Mar 2014)

See e.g.:... See more
Hi Greg,

I live in the UK and don't have to register for VAT (unless I earn above a certain threshold). All my invoices have the following text on them:

VAT-exempt: HMRC Reference:Notice 700/1 (Apr 2010)

However, I just noticed that there has been an update, which might require me to change the above text to:

VAT-exempt: HMRC Reference:Notice 700/1 (Mar 2014)

See e.g.:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&propertyType=document&columns=1&id=HMCE_CL_000086

+

"HMRC Reference:Notice 700/1 (Mar 2014)
Should I be registered for VAT?
VAT Notice 700/1: In business, not sure about VAT registration - read on."

@ https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat

which leads here:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&propertyType=document&columns=1&id=HMCE_CL_000086

-----------------------------------------------------------------------------------------*

I'll be looking into this ASAP.

I work for companies from across the globe (mostly located in the Netherlands, Belgium and the UK and US) and have never had a problem getting paid.

Michael

[Edited at 2014-10-23 22:09 GMT] ▲ Collapse
 
Samuel Murray
Samuel Murray  Identity Verified
Netherlands
Local time: 06:07
Member (2006)
English to Afrikaans
+ ...
But... the VAT rate isn't 0% Oct 23, 2014

GregSmith wrote:
On my invoices for EU countries other than my own, I use the following citation ... opposite a 0% VAT figure - and including both my own and the client's VAT number...


Are you sure the VAT rate is 0%? I thought that the VAT is shifted to the other party, but that the VAT rate isn't actually 0% (i.e. the VAT isn't paid by either party, but it isn't "zero" percent).
 
Piet DM
Piet DM
Belgium
Local time: 06:07
English to Dutch
+ ...
In Belgium Oct 24, 2014

It's similar in Belgium. This is how we do it:

"Geen Belgische btw - art. 44 richtlijn 2006/112/EG. Btw te voldoen door de medecontractant - art. 196 richtlijn 2006/112/EG – Belgisch btw-wetboek, art. 21§2 en 51 §2”.
 
Kirsten Bodart
Kirsten Bodart  Identity Verified
United Kingdom
Local time: 06:07
Dutch to English
+ ...
I though Oct 24, 2014

the EU abolished cross-country VAT on transactions where both parties are VAT-registered in the EEA, so although you may be required to charge VAT if you were invoicing a client in your own country, you do not have to charge VAT to a client abroad UNLESS that client isn't VAT registered (private people for example).
From company to company, VAT is not applicable. So no reverse charge.
 
Samuel Murray
Samuel Murray  Identity Verified
Netherlands
Local time: 06:07
Member (2006)
English to Afrikaans
+ ...
Difference between "no VAT" and "0% VAT" and "VAT shifted" Oct 24, 2014

Kirsten Bodart wrote:
From company to company, VAT is not applicable.


There is a difference between "no VAT" and "0% VAT" and "VAT shifted", although in all three cases, you don't pay anything. Just make sure that you're okay to write anyone of them on your invoice -- your country's tax department may prefer that you use a specific wording.

In my country of residence, I can't put "0% VAT" on my invoices, because none of my services have a 0% VAT rate. I can put "no VAT" on the invoice for non-EU clients, but I can't put "no VAT" on the invoice for EU clients. The required wording for invoices to EU clients is "VAT shifted", because there definitely is VAT (it's just not paid). That's how my local rules have it. Check with your country's tax department about your local rules.
 


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Intra-EU invoice VAT citation







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