Rules when buying services from other EU countries

heldrida

Hi!

My company provides computer development consultancy services and I'd like to buy services from other Agencies or Freelancers from a different country!

Given that my business has some profit, I'd like to invest in some of my ideas! Unfortunately, I spend a lot of time working on client projects, leaving not much time and energy to work on my projects. Although I do my best, I'd like to reduce the number of sleepless nights by buying services from other providers, mainly trading in the EU, if possible!

I'd like to get some advice, regarding VAT, for example. My company is VAT registered and when buying services from Freelancers based on a different EU country, should they invoice with the VAT? I'm trying to figure this out and I did contact my accountant who mentioned they shouldn't, but I did some of my own research ( google for europa dot eu, Cross-border VAT
* sorry, I'm a new user and not able to post links ) and I'm a bit confused.

The other question that I have is on the invoice. How do I know that they're declaring taxes in their country and their business is legitime? How can I check that or ensure I'm trading with the right people?

I found some good resources through the freelancer dot com website and similar others.

Any tips or advice are appreciated!

Thank you!

paddyrg

http://ec.europa.eu/taxation_customs/vies/ to check if you've been given a legit VAT number

https://www.gov.uk/government/publications/vat-notice-70012-filling-in-your-vat-return/vat-notice-70012-filling-in-your-vat-return sect 3.3 is probably what you're after.

https://www.gov.uk/guidance/vat-how-to-report-your-eu-sales if you sell to anyone you'll need the EC Sales List too

heldrida

Thanks for looking!

Yes, it's a legit VAT number and VAT returns are filled by my accountancy agency, they take care of that for me.

I'm trying to figure out how to buy from Freelancers in the European Union. Should they add VAT, for example? Is there something else I need to know, or is simply a matter of getting the invoice and paying them? How to ensure the person I'm trading with is providing a legit invoice, etc? This sort of questions about buying services, so I won't be selling at this time;

paddyrg

I suggest asking your accountant how it's best for you to do this. VAT is handled slightly differently cross border. Alternatively chew through the VAT section of gov.uk website

martindow

If you're buying from a EU company they should be checking your VAT number. Once they are happy with this they should not charge their local VAT. You need to include these transactions on your VAT return - I think in both box 7 and 9.

If you are selling to an EU VAT registered company then you need to check their local VAT number is valid before you supply without adding VAT.

bris

VAT is just a paper exercise on the VAT returns from other EU states. No money passes hands.