VAT rules in the EU: do you have to charge VAT when selling to a business customer?

When selling to individuals in the EU, you usually have to charge VAT. But are the rules the same when it comes to a business customer? Explore the rules for intra-community transactions and for which services an exception applies.

Selling goods and services to a business customer in an EU country

You do not need to charge VAT when you sell goods to a business customer in another EU country and ship them to them. This also applies to services. Such B2B sales are considered an intra-community supply, for which the reverse charge mechanism applies.

Therefore, you do not charge VAT, as your customer must declare, pay, and deduct it in their own VAT return.

Read more about the VAT reverse charge

⚠️ Note: Always check via the VIES database whether your customer has a VAT number in the EU. If not, you must charge VAT (usually the rate that applies in your own country).

Intra-community supply? Provide proof!

Just as when you sell goods to customers outside of Europe, you must also be able to prove that your products have indeed left the country for European B2B sales. For example, with a:

• Tracking proof of the package
• Invoice from a mail-order company
• Receipt email from your customer

The rules differ when selling to an individual in the EU.

Intra-community services: exceptions

For some services, you still pay the VAT that applies in the country of the service provider. These services include those:

• Related to real estate
• Granting access to events related to culture, art, sports, science, entertainment, or education
• Renting a means of transport for short periods
• Falling within the category of passenger transport
• Related to restaurants or catering

Services exempt from VAT

Some services such as education, healthcare, and financial services are exempt from VAT. Neither you nor your customer have to pay VAT, and thus no VAT can be deducted. For you, this means you cannot deduct the VAT of purchases specifically related to the sale of those goods or services.

Can I deduct VAT?

If your European customer has a valid European VAT number (which you can check here), then you do not need to charge VAT. You may still deduct the VAT you had to pay for the goods or services you specifically had to purchase for your sale. This does not apply if it concerns a service that is exempt from VAT.

Everything according to VAT rules with Accountable Not entirely sure how to correctly list intra-community supplies or VAT exemptions on your invoice? Accountable ensures your invoices meet legal requirements and are correctly included in your VAT return.

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Valesca Wilms

As content marketing lead at Accountable Belgium, Valesca writes about freelancing, self-employment, and taxes based on her own experience as a freelancer.