europe, vatI’m trying to get my head around the changes to the EU’s VAT laws that occurred in 2015 as my UK SaaS business is starting to contract with EU customers. A lot of the VAT documentation online is consumer-focused (i.e. where the buyer is not VAT registered).
So with an example, using the euro for currency simplicity:
If I’m a UK business, and I sell SaaS access for 1000 euros to a French business, who owes VAT? To whom is it owed? How much is owed?
From article 44 of the VAT directive:
Example 19: For accountancy services supplied by a Bulgarian company to a business customer with his place of business in Austria, Austrian VAT must be charged. If the Bulgarian supplier is not established in Austria, the Austrian customer will account for VAT under the reverse charge mechanism.
So in the example in the question, it would be UK business owes French VAT at 20% to the Direction des Finances Publiques.
Thanks to @Denis de Bernardy for the europa.eu link with the generalized information that led me to the answer.
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