VAT with clients abroad: how does it work?
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
Supplying a service to a business in another EU country means reverse-charging the VAT and reporting it in the EU sales listing; to EU consumers you usually charge normal Dutch VAT.
- Always verify your client's VAT identification number through the VIES check; if it is wrong you may not reverse-charge.
- For digital services and distance sales to EU consumers a € 10,000 annual threshold applies; above it you charge your client's country rate through the One Stop Shop.
- If you buy software or advertising from an EU supplier, the VAT is reverse-charged to you: you declare it and deduct it in the same return.
- Foreign VAT on your costs is reclaimed through a separate refund request, by 1 October of the following year at the latest.
More and more self-employed people work for clients abroad. As soon as you cross a border, the VAT rules change. Whether you charge VAT depends on where your client is and whether they're a business or a private individual. This article explains the main lines so you don't make mistakes on your invoice.
Client is a business within the EU
If you supply a service to a business in another EU country, for instance as a translator or interpreter for a Belgian agency, you usually don't charge VAT but reverse-charge the VAT to your client. On your invoice you put 'VAT reverse-charged' with your client's VAT identification number. Your client then declares the VAT in their own country. You report these supplies to the tax authorities via an ICP declaration (intra-community supplies).
Client is a private individual within the EU
If you supply to a private individual in another EU country, you often simply charge Dutch VAT. For some digital services separate rules apply and you must charge the VAT of your client's country. The One Stop Shop (OSS) scheme exists for this, so you can declare it via a central point. And for work on a property, an event or catering a separate rule applies; see where is your service taxed.
Client outside the EU
If you supply a service to a business outside the EU, you charge no Dutch VAT: the service is taxed in your client's country. For private customers outside the EU it depends on the type of service; for advice, advertising and digital services you charge no Dutch VAT, for other services you often do. It's wise to check per country whether there are local obligations.
Why is this error-prone?
VAT with foreign clients is one of the most error-prone topics for self-employed people. An incorrectly applied reverse charge, a missing ICP declaration or the wrong rate can lead to additional assessments. If you regularly work internationally, have your VAT processing set up properly. Start with the EU sales listing: it is the one most often forgotten.
The four situations at a glance
Two questions decide what you do: is your client a business or a private individual, and are they inside or outside the EU. That combination gives four situations, each treated differently.
| Client | What you do | On your invoice |
|---|---|---|
| Business in the EU | Reverse-charge the VAT to your client | VAT reverse-charged + your client's VAT ID |
| Private individual in the EU | Usually normal Dutch VAT | Dutch rate |
| Business outside the EU | No Dutch VAT | Not taxed in the Netherlands |
| Private individual outside the EU | Usually no Dutch VAT | Check per country |
Digital services to private individuals
If you sell online courses, software or e-books to private individuals in other EU countries, the VAT rate of your client's country applies once you exceed the 10,000 euro annual threshold. You can handle that through one Dutch return using the One Stop Shop, so you need not register in every country separately.
Buying from abroad
It works the other way round too. If you buy software or advertising from an EU supplier, the VAT is reverse-charged to you: you declare it in your VAT return and deduct it in the same return. On balance you pay nothing, but declaring is mandatory. Under the small business scheme you cannot deduct that VAT, so you genuinely pay it.
Frequently asked questions
Do I charge VAT to a client in Germany?
If it is a business with a valid VAT identification number, you reverse-charge and charge nothing yourself. If it is a private individual, you usually charge normal Dutch VAT.
How do I verify my client's VAT number?
Through the European Commission's VIES check. Keep a screenshot of the verification with your invoice. If the number is wrong, you may not reverse-charge and the VAT stays at your expense.
What is the EU sales listing and must I file it?
A separate listing alongside your VAT return, stating per EU client how much you reverse-charged. It is mandatory as soon as you supply businesses in other EU countries, and you file it in the same rhythm as your VAT return.
Is there a threshold for sales to EU consumers?
Yes, 10,000 euros a year for digital services and distance sales combined. Below it you charge Dutch VAT, above it the rate of your client's country, usually through the One Stop Shop.
Do I charge VAT to a client in the United Kingdom?
Since Brexit the UK lies outside the EU, so as a rule you charge no Dutch VAT. Do check whether anything is required in the UK itself; that differs per type of service.
Can I reclaim foreign VAT on my costs?
Not in your regular return. There is a separate refund procedure through the tax authorities, per quarter or per year and by 1 October of the following year at the latest. A threshold applies, so it often only pays off for larger amounts; see reclaiming VAT from another EU country.
Sources
- Charging VAT on services to customers in other EU countriesBelastingdienst · belastingdienst.nl
- Reverse-charge scheme: when you shift VATBelastingdienst · 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.
