Organising EU invoices correctly
Reverse charge may apply to many cross-border B2B services within the European Union. Whether the rule fits depends on the specific service, customer status, place of supply and possible exceptions.
Distinguish services from supplies of goods
For services supplied to a business in another EU Member State, the general B2B rule often applies: the place of supply is where the customer is established, and the customer accounts for VAT in its own country. Supplies of goods have different requirements and evidence. The two should not be treated as the same.
The specific transaction decides
Immovable property, events, passenger transport, certain rentals, stock held in another country or further countries can change the assessment. A valid VAT identification number is an important indication, but it does not replace a review of the complete circumstances.
The invoice and ongoing accounting must fit together
For a suitable reverse-charge transaction, the invoice details, accounting and required filings must match. The responsible independent partner tax adviser and the accounting office assess which details and filings are required in the individual case.
HUNCONSULT supports the organisational coordination
HUNCONSULT brings the business activity, invoicing system and accounting into the same organisational clarification. Norbert Péter conducts the communication in German. The VAT assessment remains with the responsible independent partner tax advisers.
Before the first cross-border transaction
A clear description of the service or movement of goods, the countries involved and the type of customer are helpful. This shows which tax question should be clarified before the first invoice.
Further reading: Hungarian VAT ID number, Accounting for a Kft. in Hungary and Set up a Kft. in Hungary.
