I hope you are doing well. I live in Venezuela, and work as a freelancer for international clients. One of such clients is based in the EU, specifically Germany. How do I deal with invoicing them? More specifically, I need to know how to deal with the VAT. I've read online that I need to specify in the invoice that the VAT shall be reverse-charged. Is that correct? Thank you very much for your time.
2 Answers
For Germany/Venezuela I have no specific information, but for Sweden/Singapore I've got some experience.
If a Singaporean entity is invoicing a Swedish entity, the Singaporean entity can write "reversed tax charge" on the invoice as well as 0% VAT tax.
It is then up to the receiving entity to pay VAT taxes to their tax authorities.
My best guess is that the rules are the same as it is basically "importing a service from outside the EEC".
I have no idea how it works in Venezuela, but when you are charging services to a non-EU country from a EU-country, there is no VAT due at all (not even a reverse charge).