Payment in kind

Hello,

How your customer pays you does not really matter, but you do have to issue an invoice for your asking price. For example, if you issue an invoice from €100 and you agree that he will pay this amount in apples, that is fine, of course. But this amount must be included in your turnover.

So, if I understand correctly, you need to issue an invoice for the value of the discount he gave you. If he gave you a discount of £100, you issue him an invoice from £100. You both enter this in your accounts. You in your income and he in his expenses. But you do not give him a zero invoice, that would be completely wrong. You have indeed received on this payment (in kind) and it therefore belongs in your income.The fact that he is a Dutch company and you are a Belgian company exempted from VAT does not make much difference in itself. However, he must charge you local VAT. He is not allowed to reverse charge the VAT. Of course, you are not allowed to charge VAT.