Question Belize B2B service to EU corporate customer: Is VAT applicable?

[alex001]

There is an offshore programming service that is supposed to be provided, not selling any goods.

 

[ShillGates]

yes vat is applicable but net effect is zero

 

[alex001]

Thank you OffMyBack,

I think I get, thanks, so the VAT should be in the invoice but the value of the VAT should be 0, right?

 

[koohl]

Yes that is correct, and even more important today because of payment processors have to ensure you charge VAT in EU.

 

[daniels27]

yes vat is applicable but net effect is zero

As far as I know, there is no VAT due if you provide personal work. Like consulting etc. If you sell digital goods, hosting, etc. where no manual work is involved, you need to charge VAT.

You may want to check the relevant laws. Here the German edition:

Umsatzsteuerliche Behandlung elektronischer Dienstleistungen

Informationen zur Steuerbarkeit von elektronischen Dienstleistungen finden Sie auf diesem Merkblatt.

www.ihk.de

BMF Amtliche Umsatzsteuer-Handausgabe 2022 - UStH 2018-2019 - 3a.12. Auf elektronischem Weg erbrachte…

usth.bundesfinanzministerium.de

Hence, your personal service of programming would not be taxable. Still, you may want to add his VAT Reg. No. to the invoice, it does not hurt.

Thank you OffMyBack,

I think I get, thanks, so the VAT should be in the invoice but the value of the VAT should be 0, right?

If you put his VAT Reg. No. on the invoice, you can put 0% VAT on the invoice. If you do not have his VAT Reg. No., you need to charge.

Yes that is correct, and even more important today because of payment processors have to ensure you charge VAT in EU.

I think he is doing programming himself as engineering/consulting. Most likely getting paid by bank transfer. It would not be taxable then, no?