VAT when reselling someone else's services
Written by Ilias Aarrass6 min read · Published on · Last reviewed on 
In short
If you resell a bought-in service in your own name, for VAT you supply that service yourself: you deduct the input tax and charge VAT on the full amount you invoice, mark-up included, in principle at the rate of the resold service.
- A disbursement is only allowed if the invoice is in your client's name, you do not deduct the VAT and you pass on the exact amount.
- The rate follows the resold service: 9 per cent stays 9 per cent, even if your own hours are at 21 per cent.
- Exemptions for healthcare and education attach to the person or institution, so on resale your supply is often 21 per cent after all.
- Book disbursements to a suspense account, so they stay outside your turnover and remain visible in an audit.
You take on an assignment, bring in a colleague for part of it and put the whole thing on one invoice to your client. Or you arrange a translation, a photo shoot or some hosting for a client and pass on the cost. As soon as you resell someone else's service in your own name, VAT assumes you supply that service yourself. That affects the rate, your invoice and sometimes the question whether you may pass on VAT at all. This article covers the three variants and how to invoice in each.
Reselling in your own name: you are the supplier
The main rule is simple. If your name is on the invoice to the client and your name is the customer on the purchase invoice, you bought and sold the service. For VAT you then act as if you supplied it yourself: you deduct the VAT on the purchase invoice and you charge your client VAT on the amount you bill, including any mark-up.
That also means you may make something on it without the VAT becoming complicated. If you buy a service for € 500 and invoice € 650, you charge VAT on € 650. Your margin is simply part of your turnover. How to present such a pass-through with a mark-up on the invoice is in passing on costs to your client.
| Variant | In whose name is the purchase invoice? | What you do |
|---|---|---|
| Resale in your own name | in your name | deduct the VAT, your own invoice with VAT, mark-up allowed |
| Disbursement | in your client's name | deduct no VAT, pass on exactly with no VAT on top |
| Intermediation | the other party invoices your client directly | you invoice only your intermediation fee, with VAT |
The rate follows the service, not your own work
Because for VAT you supply the same service, in principle the same rate applies. If you resell passenger transport, that is 9 per cent, even though you charge 21 per cent for your own hours. If you resell an ordinary service, it is 21 per cent. If you put both on one invoice, you split per rate; see which VAT rate applies.
With exempt services that often does not hold. Exemptions for healthcare and education attach to the person or institution supplying the service, not to the service itself. If you buy in an exempt course and resell it in your own name while you do not meet the conditions yourself, your supply is simply taxed at 21 per cent. Have that checked before setting up such an arrangement, because you cannot add VAT to an invoice afterwards.
Bringing in a colleague and passing it on
- Purchase
- a colleague invoices you € 800 plus € 168 VAT
- VAT deduction
- € 168 deductible in your return
- Your invoice
- € 800 passed on plus € 200 coordination is € 1,000, plus € 210 VAT
- To remit
- € 210 less € 168 is € 42
- Profit
- € 200 of margin, excluding VAT
Result: You only remit VAT on your own added value. If you work in construction with subcontracting, the reverse charge may apply; see [the reverse charge in subcontracting](kb:btw-verleggen-bouw-onderaannemer).
When it is a disbursement
A disbursement is a cost you advance for your client while the client is the real customer. Think of official fees you pay on your client's behalf, or an invoice in the client's name that you advance. It is then not your turnover: you do not deduct the VAT, you pass on the exact amount and you charge no VAT on it.
The conditions are strict, and that is exactly where it goes wrong in practice. The invoice must be in your client's name, you must not have deducted the VAT, and you must pass on exactly the same amount with no mark-up. If you do not stick to that, it is simply a resale and VAT applies to the whole amount. Book disbursements to a separate suspense account in your bookkeeping, so they stay visibly outside your turnover.
Reselling across the border
If you buy a service from a supplier in another EU country, the invoice usually shows no VAT because it is reverse charged to you. You report that VAT in your return and deduct it in the same return; see receiving and recording reverse-charged VAT. You then resell the service with Dutch VAT if your client is in the Netherlands.
If your client is abroad, the place of supply decides what you do. For a business client in the EU you reverse charge the VAT and report it in your EU sales listing. For a private individual, or for services with their own rule such as transport or work on property, it can turn out differently; see place of supply and the exceptions.
- Check in whose name the purchase invoice is before passing it on.
- Use the rate that belongs to the resold service and split it on your invoice.
- On a resale, charge VAT on the whole amount, including your mark-up.
- Book disbursements to a suspense account, not to your turnover account.
Frequently asked questions
Can I pass on a bought-in service with a mark-up?
Yes. You invoice in your own name and charge VAT on the whole amount, including your mark-up. You deduct the VAT on the purchase invoice, so you only remit on your margin.
Which VAT rate do I use when reselling?
In principle the rate of the service you resell: 9 per cent stays 9 per cent. For exemptions attached to the person or institution, such as healthcare and education, that does not apply and your supply is usually taxed at 21 per cent.
What is the difference with a disbursement?
With a disbursement the invoice is in your client's name, you do not deduct the VAT and you pass on exactly the same amount with no VAT on top. As soon as you make something on it, or the invoice is in your name, it is a resale.
And if the other party invoices my client directly?
Then you resell nothing and invoice only your own intermediation or coordination fee, with 21 per cent VAT. Do make sure your client knows they will receive two invoices.
Sources
- What you do not charge VAT on, including disbursementsBelastingdienst · belastingdienst.nl
- VAT ratesBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
