Intra-community supply of services (reverse charge)

According to EU VAT rules several types of services are liable to reverse charge. As a main rule VAT liability in relation to B2B services is where the customer is located. To zero-rate the invoice you must make sure that the customer’s VAT number is valid. The number can be verified on the European online VIES system.

The supply of certain services, for example, services related to immovable property and admission to events still operates under the ‘Special Rule’, and the place of supply is where the service or event takes place.

When reverse charge applies, the recipient of the services makes the declaration of both their purchase (input VAT) and the supplier’s sale (output VAT) in their VAT return.  In this way, the two entries cancel each other on the VAT return.