Peppol deadline: 01-01-2026
00

Avoid fines

Peppol deadline: 01-01-2026
00

Avoid fines

Community

EU company charges foreign vAT

FDP
09/10/2024
Question

Does an EU company that creates an invoice for you ALWAYS have to reverse charge VAT?

I have already read up on this in good detail here and understand the entire process of a special vAT declaration (because I myself am VAT exempted). But it is striking that certain companies such as Shopify and Meta reverse charge vAT. While others still charge vAT on their invoices. Two examples of this:

  • Canva charges 17% vAT instead of 21%. Is this a vAT amount typical for the country in question where Canva’s head office is located?

  • Dutch Label Shop (Netherlands) charges 21% vAT (with a * BE 21%) on its invoices.

Are these two invoices actually correct, or is this a bizarre financial situation for both Belgium and the other country? (see article https://dexxter.be/vAT-verleggen-wat-betekent-vAT-verlegd/ ) And what should I do here?

Can anyone clarify this for me?

Thanks in advance!

Fien

I suspect that Dutch Label Shop also has a Belgian vAT number. In that case, you must enter it as an invoice from a Belgian supplier, even if the address on the invoice is in the Netherlands. According to Canva's chatbot, the standard vAT rate for Belgian customers is 21% (they are entitled to collect vAT for Belgium). You must therefore have the invoice adjusted with a credit note showing the correct vAT rate and then book both the invoice and the credit note as a Belgian supplier.

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You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.

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