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Cross border transaction - VAT
Posted on 16/08/2011 2:42 am
Cross border transaction - VAT
Hi,
I am new to Freelancing world. Please share your experiences in the following questions:
Case 1: Freelancing Project execution country is Belgium. The Consulting company which is recruting for this project is an UK based company. If I (German national, registered as Freelancer) take up this freelancing project from a UK consulting company, should I have to pay Sales tax (VAT)?
Case 2: Same situation as like the Case 1 but here the Project execution country is Germany. Should I have to pay Sales tax in this case?
Thank you in advance.
sriv07
Member since 16/08/2011
Posted on 16/08/2011 9:05 am
Re: Cross border transaction - VAT
you have to pay VAT. irrespective to which country. There is a EU wide law, which does not matter where you pay the VAT. But as long as you have paid in one country you need not pay in another.
Check with your tax consultant on this.
my clients pay VAT in Netherlands even though they outsource to India where i am currently based.
regards
savion
Member since 23/04/2004
Posted on 16/08/2011 10:21 am
Re: Cross border transaction - VAT
Hi Savion,
thanks for the reply.
Just now got clarified with the Tax consultant. He says, with a International Tax number, I dont need to pay any VAT (Umsatzsteuer), as the billing company sits in UK. Irrespective of the Project execution location.
sriv07
Member since 16/08/2011