VAT on invoices from Google, Meta and foreign software: how to process them
Written by Ilias Aarrass6 min read · Published on · Last reviewed on 
In short
Invoices from Google, Meta and other foreign services arrive without VAT: you declare that VAT yourself in box 4b for the EU or 4a for outside it, and deduct it in box 5b in the same return.
- On balance you pay nothing, but the boxes do have to be filled in; an audit looks precisely at this.
- If 21 percent VAT does appear on your invoice, your VAT ID is missing from your account and you may not deduct it.
- In your advertising and software accounts enter your VAT identification number, not your VAT tax number.
- Under the small business scheme the reverse charge does cost money: on € 500 of advertising you remit € 105 with no right to deduct.
If you advertise through Google Ads or Instagram, or pay monthly for Adobe, Microsoft 365 or LinkedIn Premium, the invoice usually comes from an Irish company and shows no VAT. Many freelancers simply book such an invoice as a cost and leave their VAT return alone. That is not correct: the VAT has been shifted to you and you have to declare it yourself. In most cases you deduct it again in the same return, so on balance you pay nothing, but the return does need to show it. This article explains how the reverse charge works for foreign services, which boxes you use, what goes wrong when your VAT ID is missing and why it does cost money for businesses using the small business scheme.
Why there is no VAT on the invoice
Large platforms supply their services in Europe from an establishment in Ireland. Google, Meta, Adobe, Microsoft and LinkedIn all work this way. For a service between two businesses in different EU countries, the main rule is that VAT is charged in the customer's country, so in the Netherlands. Because an Irish company does not pay VAT here, the liability shifts to you. The invoice then shows no VAT, but it does show a line such as 'reverse charge', together with your VAT identification number.
That last part is essential. The platform only applies the reverse charge if it knows you are a business, which it sees from the VAT ID in your account. Platforms often check that number through the European VIES system. Suppliers from outside the EU, for example from the United States, follow the same principle: you still declare the VAT yourself, just in a different box. The background of the reverse charge in general is covered in when to reverse-charge VAT.
How to process reverse-charged VAT in your return
Your VAT return has two boxes for purchases from foreign businesses. Box 4b is for goods and services from other EU countries, such as the Irish invoices from Google and Meta. Box 4a is for goods and services from outside the EU. In both boxes you enter the invoice amount excluding VAT and calculate 21 percent VAT yourself. You then include that same VAT as input tax in box 5b.
So on balance you pay nothing, as long as you are fully entitled to deduct. It is not optional though: leave out the reverse-charged VAT and your return is incomplete, which leads to a correction in an audit. If you use accounting software, choose a VAT code such as 'reverse charge EU' or 'reverse charge non-EU' when you post the invoice, and the software fills both boxes for you. How the rest of your return fits together is explained in filing your VAT return.
Worked example: € 500 of Google Ads in a quarter
- Invoice from Google Ireland, without VAT
- € 500
- Box 4b: amount and 21% VAT
- € 500 and € 105
- Box 5b: input tax
- € 105
- Payable because of this invoice
- € 0
Result: The VAT goes in and out through your return and costs you nothing. You simply deduct the € 500 advertising cost from your profit.
VAT on the invoice after all? Check your account
If an invoice from Google or Meta does show 21 percent VAT, the platform is probably treating you as a consumer. Usually that is because your VAT ID is missing or entered incorrectly, or because the account is in your private name. That VAT has in effect been charged wrongly, and wrongly charged VAT cannot simply be deducted as input tax. An invoice you deduct VAT on must also be in your business name, see purchase invoice requirements.
The fix is to put your account in order: enter your business name, address and VAT ID in the billing settings. For recent invoices, ask the platform's support for a corrected version; for invoices from long ago that does not always work. If you did deduct such VAT in earlier returns, or forgot reverse-charged VAT, you correct it with a supplementary return. If you pay in dollars, convert to euro at the rate around the invoice date.
| Situation | On the invoice | Processing |
|---|---|---|
| EU supplier, such as Google Ireland or Meta Platforms Ireland | No VAT, 'reverse charge' and your VAT ID | Box 4b, deduction in 5b |
| Supplier outside the EU | No VAT | Box 4a, deduction in 5b |
| Supplier with a Dutch VAT number | 21% Dutch VAT | Ordinary input tax in 5b |
| VAT ID missing from your account | 21% VAT as if you were a consumer | Do not deduct; fix the account and request a correction |
Small business scheme, exempt revenue and private use
If you use the small business scheme, the reverse charge works against you. You are still a business, so the VAT is shifted to you, but under the scheme you have no right to deduct input tax. You declare the VAT and actually pay it: on € 500 of advertising that is € 105 extra. Because you normally file no VAT return under the scheme, you request an incidental VAT return from the tax authorities for it. If you leave out your VAT ID, the platform charges 21 percent itself; either way it costs you.
If you have exempt revenue alongside taxed revenue, for example in care or education, you may only deduct the reverse-charged VAT for the part that relates to your taxed revenue. How to allocate it is explained in splitting VAT with exempt revenue. And watch private use: a streaming subscription or a private Microsoft account is not a business expense, even if the invoice is neatly reverse-charged.
Frequently asked questions
Do I have to declare it if the net result is zero?
Yes. The reverse-charged VAT belongs in box 4a or 4b and as input tax in 5b. The net result being zero does not make it optional; an audit specifically checks whether these boxes are filled in.
Do these purchases belong in the EU sales listing?
No. The EU sales listing is only for what you sell to businesses in other EU countries. Purchases from other EU countries do not belong in it.
I have not declared reverse-charged VAT for years. What now?
If you were fully entitled to deduct, it was zero financially, but your returns were incomplete. Correct it with a supplementary return. If you used the small business scheme or had exempt revenue, you still pay the non-deductible part.
Does this also apply to a one-off software licence?
Yes. Whether it is a subscription, a one-off licence or an advertising campaign makes no difference: a digital service from a foreign business to you as a business follows the same reverse charge rules.
Sources
- Declaring services from another EU countryBelastingdienst · belastingdienst.nl
- Services from non-EU suppliers in box 4aBelastingdienst · belastingdienst.nl
- Joining the small business scheme means no VAT deductionBelastingdienst · 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.
