Reverse charging VAT for foreign clients Do you work as a freelancer for a client abroad, for example in Belgium? Then you reverse charge the VAT. Why? The Tax Authorities only levy tax on services used in the Netherlands. If you provide a service abroad, the client pays VAT there. You therefore send an invoice without VAT, but you do still file a VAT return.
Reverse charging VAT for specific activities Sometimes you must also reverse charge VAT because of the type of work you do. This applies, for example, to construction, shipbuilding, cleaning, and landscaping companies. In these cases, the invoice will also state: ‘VAT reverse charged’. You do not receive VAT, because the client pays it themselves.
How do you indicate this in your VAT return? Simple: in your VAT return, you only fill in the turnover for which you have reverse charged VAT. You do this under section 1 ‘Prestaties binnenland’ → 1E. You do not pay any VAT, but the turnover must be included in your return.
