You may have heard that the European Union will apply new VAT rules from the 1st of January 2015 to every company that delivers electronic services to its customers within Europe.
Our company and most of our customers fall into this category as well. Below we will explain what the changes are and how we are applying The VAT to our customers.
VAT rule changes
Currently, the VAT percentage is based on the country of the supplier. So right now customers in the EU are charged for Dutch VAT.
New VAT rules
From the 1st of January 2015, the VAT percentage must be based on the country of the customer. Basically, this means, that a customer of The Netherlands will be charged for example 21% VAT and a customer from Germany will be charged 19%.
How we apply VAT to our customers
However, the VAT calculation differs for private customers and companies. There are standard rates and reduced rates.
Private customers in NL and the EU
If you are a private customer in the Netherlands you are allowed to pay your own VAT rate and the same rule will be applied to private customers in the EU as well.
Companies in NL and the EU
However, if you are a company in the EU, there are two options during the sign-up process. Depending on your situation you can choose to enter your VAT number or not.
- When you don’t enter your VAT number we are required to charge the applicable VAT.
- When you do enter your VAT number during sing up process then you will pay the VAT in your own country and you need to report this in your own country as well.
Private customers outside NL and the EU
Private customers and companies outside the European Union are excluded from VAT charges.
We will apply the new VAT rule to our existing customer’s accounts from the 1st of January which means that invoices generated from the 1st of January will contain the new VAT rate.
New VAT Rates
| Country | Code | VAT Rate |
| Austria | AT | 20% |
| Belgium | BE | 21% |
| Bulgaria | BG | 20% |
| Croatia | HR | 25% |
| Cyprus | CY | 19% |
| Czech Republic | CZ | 21% |
| Denmark | DK | 25% |
| Estonia | EE | 20% |
| Finland | FI | 24% |
| France | FR | 20% |
| Germany | DE | 19% |
| Greece | EL | 25% |
| Hungary | HU | 27% |
| Ireland | IE | 23% |
| Italy | IT | 22% |
| Lithuania | LT | 21% |
| Luxembourg | LU | 15% |
| Malta | MT | 18% |
| Netherlands | NL | 21% |
| Poland | PL | 23% |
| Portugal | PT | 23% |
| Romania | RO | 19% |
| Slovakia | SK | 20% |
| Slovenia | SI | 22% |
| Spain | ES | 21% |
| Sweden | SE | 25% |
| United Kingdom | UK | 20% |
Questions?
If you have any questions regarding the VAT changes you can contact us by sending an email to [email protected].
