Understanding VAT Implications for Borderless Workers: Key Considerations for Global Mobility

The text discusses the importance of understanding Value-Added Tax (VAT) for borderless workers, such as employees on international secondments and digital nomads. It highlights that VAT considerations are often overlooked compared to income tax and Social Security. The Court of Justice of the European Union ruled that seconding staff to another company constitutes a taxable service if any payment is received, regardless of profit margin. However, VAT may not always be charged due to mechanisms like the reverse charge for cross-border transactions or exceptions for VAT groups. Understanding these rules is crucial for managing tax obligations effectively.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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