LLC USA need to add VAT for EU invoice?

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Ciropollo

New member
Hello,
I have a client from EU that made me a payment on my website.

Now he's asking invoice. As long as his company is in EU, I should make the INVOICE included of 20% VAT of his country or just the total with 0% vat?

For example, he spent 1000, I make the invoice 1000 and finish or 800 +200 of vat?

Thanks
 

Sols

Staff member
Mentor Group Gold
If you charged VAT, you include that in the amount already paid (unless you plan to charge the client again, separately for the VAT).

If you did not charge VAT, your invoice should be 1,000 wit no VAT or sales tax.

Whether you should charge VAT is a different question. The general rule is that you should, but the reality is that most non-EU companies don't and EU tax authorities aren't spending much time going after small, overseas businesses with no EU assets or presence.
 

noname

New member
Exactly like the Sols said, and EU is going to chase big companies Google, Apple, Facebook and will ignore if you are small. I would say you just stick with the rules of your jurisdiction, if you are a US Delaware LLC I woudn't charge any VAT. If you are selling services, it is a very complicated process collecting VAT and paying to appropriate authorities for different countries in the world depending on where your client come from. If you are selling some software in this case you have payment gateways such as Fastspring that does all this for you, same like Google Play store does if you sell apps through them.
 

uplana

Corporate Services
Mentor Group Gold
Forget about VAT in this single situation, I would just send him the invoice without VAT and you will never hear anything from anyone. Unless the VAT amount is in the millions :D
 

marzio

Entrepreneur
If you are selling services, it is a very complicated process collecting VAT and paying to appropriate authorities for different countries in the world depending on where your client come from.

If he is selling services VAT should be charged where the service is rendered and not where the client lives.
 

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