Summary
- The main rule is that invoicing on a supply of goods or services (so not applicable for I/C acquisition of goods and importation) is subject to the rules in the country determined following the place of supply rules.
- The derogation is that invoicing is subject to the rules of the country where the supplier has established his business or has a fixed establishment from which the supply is made if
- supplier is not established in the MS where the supply is deemed to be made
- or his fixed establishment does not intervene in the supply and the person liable for the payment of the VAT is the person to whom the goods or services are supplied or
- the supply of goods or services is deemed to be made outside the EU.
- In case of self-billing, the main rule always applies.
Relevant article in the EU VAT Directive
The rules with respect to which country’s rules should be followed for invoicing are referred to in art. 219a of the EU Directive 20116/112/EU. This article has been implement as part of the Invoicing Diretive 2010/45/EU which should have been implemented by the Member States per January 1, 2013.
Article 219a
1. Invoicing shall be subject to the rules applying in the Member State in which the supply of goods or services is deemed to be made, in accordance with the provisions of Title V.
2. By way of derogation from paragraph 1, invoicing shall be subject to the following rules:
- (a) the rules applying in the Member State in which the supplier has established his business or has a fixed establishment from which the supply is made or, in the absence of such place of establishment or fixed establishment, the Member State where the supplier has his permanent address or usually resides, where:
- (i) the supplier is not established in the Member State in which the supply of goods or services is deemed to be made, in accordance with the provisions of Title V, or his establishment in that Member State does not intervene in the supply within the meaning of point (b) of Article 192a, and the person liable for the payment of the VAT is the person to whom the goods or services are supplied unless the customer issues the invoice
(self-billing); - (ii) the supply of goods or services is deemed not to be made within the Community, in accordance with the provisions of Title V;
- (i) the supplier is not established in the Member State in which the supply of goods or services is deemed to be made, in accordance with the provisions of Title V, or his establishment in that Member State does not intervene in the supply within the meaning of point (b) of Article 192a, and the person liable for the payment of the VAT is the person to whom the goods or services are supplied unless the customer issues the invoice
- (b) the rules applying in the Member State where the supplier making use of one of the special schemes referred to in Chapter 6 of Title XII is identified.
3. Paragraphs 1 and 2 of this Article shall apply without prejudice to Articles 244 to 248.
Art, 244 to 248 relate to “Specific obligations relating to the storage of all invoices”
Overview of the European Union VAT Directives, Implementing regulation, Council decisions
