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VAT on digital B2B sales to same EU country?

Do companies have to charge VAT on B2B sales to businesses in their own country?

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I have read that you don't have to charge EU VAT on cross-border B2B sales to other EU countries, so long as the business has a valid VAT number. However, I can't find any information about whether this also applies to B2B sales within the same country.  

For example, if a German company sells a software product B2B to a VAT-registered business in Germany, do they have to charge VAT? Or if a Spanish company sells to a business in Spain, do they have to charge VAT? 

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By lionofludesch
30th Sep 2019 16:03


Or a UK company selling to another UK company.

Or, more confusingly, a Scottish company selling to a Welsh company.

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By paul.benny
30th Sep 2019 16:07

You're right that no VAT is charged by the seller on cross-border B2B supplies - although the conditions are a little more specific than you mention. The buyer has to 'reverse charge' to account for VAT in their country

Within the UK, reverse charge also applies to certain categories of supply - mobile phones, wholesale gas and electricity. This is essentially an anti-fraud measure by HMRC. The full list is contained in Notice 735.

Other member states have similar rules of their own for domestic supplies. If you think you may be in scope, I would recommend specialist advice in the countries where you are making domestic supplies.

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