Which VAT treatment applies to the services you supply ?

• VAT Treatment for Foreign Services: When providing services to foreign customers (both European and non-European), the VAT treatment depends on the nature of the service and the recipient’s status (business or private). Generally, B2B services are not subject to VAT in the supplier’s country but in the recipient’s country, meaning invoices should not include VAT, unless specific derogations apply.
• Handling Multiple Services for VAT: When offering multiple services, it is important to determine if they should be treated as a single VAT item or separately. The Court of Justice provides exceptions for complex services and non-independent ancillary services, which can affect how VAT is applied.
• Re-invoicing Costs and Foreign VAT: Companies often face challenges when re-invoicing costs like hotel, restaurant, and legal fees, requiring careful consideration of invoicing methods. Additionally, if a service provider charges foreign VAT, it may be due to the service being taxed in the location where it is performed, necessitating the exploration of foreign VAT refund options.

Source vatdesk.eu

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