You buy a software programme from a supplier in the United States, you pay the invoice, and suddenly you see Belgian VAT on the document. Strange, isn’t it? A supplier from outside the EU charging our VAT – that sounds contradictory. Yet it happens more often than you might think.
Why does a non-EU supplier charge Belgian VAT? 🧐
Large companies, such as software platforms or online shops, often register inside the EU with an EU OSS number. This is essentially a VAT number beginning with ‘EU’. This applies mainly to B2C customers (private individuals). Through the OSS system, they are then permitted to charge Belgian VAT and pay it directly to our tax authorities.
For B2B customers (companies), an American company usually does not charge VAT. The Belgian customer subject to VAT then applies the reverse charge mechanism, and the invoice should state ‘reverse charge’.
To put it simply: the supplier acts as if they are based in Belgium for B2C customers, and you simply pay the standard Belgian VAT rate. For B2B customers, VAT is applied via the reverse charge mechanism.
What does this mean for your accounts? 📚
As a business subject to VAT, a B2B purchase invoice should not include Belgian VAT, as you are not a private person.
In that case, you must ask the supplier to update the invoice so that no VAT is charged and you can declare the VAT via the reverse charge mechanism.
So update the invoice before you book it.
Here’s how it works in practice 🧮
Imagine:
- You buy software from a supplier in the US.
- The invoice states: €200 + 21% VAT = €242
What do you do as a business subject to VAT (B2B)?
- You do not pay the VAT yet; you ask the supplier to update the invoice so that no VAT is charged and the VAT is applied via reverse charge.
- The correct invoice will therefore be: €200 excluding VAT, marked ‘reverse charge’.
Tip:
With Dexxter, it’s a piece of cake. You just need to scan the invoice. Dexxter does the rest. This keeps your accounts neat, organised and error-free.
In a nutshell 🌰
- Suppliers from outside the EU do not normally charge Belgian VAT. You then apply the reverse charge (B2B).
- Is Belgian VAT shown on the invoice? Then simply ask for an updated invoice without VAT.
- For B2C customers with an EU OSS number, the supplier may charge Belgian VAT.
Useful URLs 🔗
Exempted from VAT: how do I process a purchase from abroad?
