How and when do I have to shift the VAT?
In general with regard to other businesses and entrepreneurs VAT is reversed (shifted) in order to make it possible for your cliënt to pay local VAT and get it back. In this case you need to add their VAT number to your invoice. In the case of individuals, you can charge our local VAT (0%, 9% or 21% depending on the service you deliver).
Make sure that you select the correct option when preparing an invoice under the heading VAT shifted.
Employed in construction
In construction this depends on the agreements that you have made with your client. To be able to shift, your customer's VAT number must always be on your invoice. This VAT shift also applies to any expenses that you have incurred or advanced. Please note: is your customer a private individual? Then he / she has no VAT number and you just charge VAT.
Client abroad
Is your client abroad? Then there is a good chance that you will need to shift the VAT. First check if your customer is located within EU or outside EU. Head office is leading in this.
Customer within the EU
This is the European tax area. Carefully read here which European areas do not belong to the EU. To be able to relocate, your customer's VAT number must always be on your invoice. Please note: is your customer a private individual? Then he / she has no VAT number and you simply charge Dutch VAT. You can always check if you have a valid VAT number with the European VIES System.
Germany exception
Watch out with customers in Germany. In this country they work with different VAT numbers. In addition to the Umsatzsteuer Identifikationsnummer (Ust.-Id.) they also have the Steuernummer. The first is correct. This always consists of DE + 9 digits. The Steuernummer is only relevant within Germany.Does your customer not have a Ust.-Id.? Then you should request this number before you can invoice. Without this, you are not allowed to reverse charge. In that case, you should bill your client just like you would a regular Dutch client according to Dutch VAT rules.
France exception
Also pay good attention to your French customers. Sometimes, they will provide you with a SIREN/ SIRET number. This is the French equivalent of a KvK registration. A SIREN number is 9 digits; the SIRET number is the same 9 digits plus 5 more for a total of 14. These numbers are only relevant within France.
You should be looking for the VAT number(Numéro de TVA). This is FR, 2 digits, and the SIREN number (e.g. FR 00 123 456 789). You can always ask your clients for their SIREN number, plus FR ## (two digits). Watch out! Some smaller clients only have a SIREN number, and no VAT number. In that case, you cannot reverse charge the VAT. You then should bill your client just like you would a regular Dutch client according to Dutch VAT rules.
Customer outside the EU
Then the VAT is by definition transferred, also to private individuals.
United Kingdom / Brexit
If you are doing business with the United Kingdom, please refer to our Brexit FAQ.