Guide
Reverse charge VAT: within the Netherlands and the EU
When you charge no VAT because it is shifted to your customer, and what you then put on the invoice.
General information. This guide contains general information and is not tax or legal advice. Your situation may differ. If in doubt, consult the Dutch Tax Administration, the Chamber of Commerce (KVK) or an adviser.
What does reverse charge mean?
With the reverse charge, the VAT shifts from the supplier to the customer. As the supplier you charge no VAT, and your customer reports the VAT in their own return. Usually the customer can deduct that VAT at the same time.
You must be sure that the scheme applies. If it is not clear who your customer is, VAT can still be assessed on you afterwards.
Reverse charge within the Netherlands
The Tax Administration lists the following cases in which VAT is reverse-charged within the Netherlands:
- Subcontracting and staff leasing in construction, shipbuilding, cleaning and gardening.
- Waste and scrap materials.
- Mobile phones and chips, game consoles, laptops and tablets.
- Immovable property.
- Forced sales.
- Gas and electricity certificates.
- Gold.
- Transfer of greenhouse gas emission allowances.
- Telecommunication services between businesses that provide these services.
What goes on the invoice?
With the reverse charge, the supplier charges no VAT. According to the Tax Administration, the invoice shows:
- The mention ‘btw verlegd’ (VAT reverse-charged).
- Your customer’s VAT identification number.
- The amount per VAT rate, as it would apply if the VAT had not been reverse-charged.
Services to businesses in other EU countries
If your customer is a business with a VAT identification number in another EU country, the service is generally taxed in the customer’s country. You issue an invoice without VAT with the mention ‘btw verlegd’ and your customer’s VAT identification number.
You report the service in your VAT return and in the ICP return (opgaaf intracommunautaire prestaties). Different rules apply to certain excluded services. If your customer has no VAT identification number, Dutch VAT usually applies; this is the case for private individuals, for example.
For goods you supply to a business in another EU country, the zero rate generally applies. You also report those supplies in the ICP return.
Checking the VAT number with VIES
Check your customer’s VAT identification number before you invoice. You can do that with VIES, a search engine of the European Commission that searches the national VAT databases. An invalid result means no information was found: the number does not exist, is not valid for trade between EU countries, or the registration is not yet complete.
Changes do not always show up in VIES straight away and the system can be temporarily unavailable. Keep a copy of your check in case of a tax audit.
How FactuurPro helps
In FactuurPro you can choose reverse charge per invoice line. Checking the VAT number and filing the VAT return and ICP return remain your task: FactuurPro does not do that check for you.