Can an EU supplier charge VAT?
In principle, no. In intracommunity transactions between VAT-registered businesses in the EU, VAT is reverse charged. The supplier should therefore not charge VAT if you have provided a valid Belgian VAT number.
Your foreign supplier still charges VAT? Here’s how to resolve the situation in PIA Go!
31/07/2025
Have you received an invoice from a supplier based in another EU country that includes foreign VAT? In principle, this should not happen. In transactions between businesses located in different EU countries, VAT is normally not charged by the supplier. Yet, this situation does occur. Here’s why it happens and what you should do if you receive an invoice with foreign VAT.
Intracommunity acquisitions: the principle
The VAT system is straightforward when a transaction takes place between two Belgian businesses. The supplier charges VAT, you pay it as the buyer, and you later recover it in your VAT return.
When you purchase from a supplier located in another EU country, the mechanism is different. This is called an intracommunity acquisition. The supplier does not charge VAT. Instead, you must declare the VAT yourself in Belgium. This mechanism is known as reverse charge.
In practice:
• you do not pay any VAT to your foreign supplier
• you declare the VAT as VAT due in your Belgian return
• you simultaneously deduct the same amount as input VAT
The transaction is therefore financially neutral, but it must be correctly recorded in your VAT return.
What if your supplier still charges VAT?
Some foreign suppliers still charge VAT. This often happens when they are not fully familiar with European VAT rules. It may also be due to your VAT number not being correctly registered.
The simplest solution is to request a corrected invoice without VAT. If your supplier refuses to issue a new invoice, you still have a few options:
- 1
Record the total amount as an expense
You can record the total invoice amount, including foreign VAT, as an expense. You cannot recover the foreign VAT, but the full amount remains deductible and reduces your taxable profit. 2Request a refund abroad
You can also request a VAT refund in the supplier’s country. However, each country has its own administrative procedures. In practice, this can be complex for smaller amounts. In many cases, requesting a corrected invoice is the easier option.
VAT exemption? Pay attention!
Some small businesses benefit from the VAT exemption scheme. In that case, it may be better not to provide your VAT number to your European supplier. If you do, the supplier will issue an invoice without VAT. Since you do not file VAT returns, you would then have to submit a special declaration in Belgium.
You can avoid this. If you do not provide your VAT number, the supplier will charge foreign VAT. You will not be able to recover it, but you will avoid additional administrative obligations.
PIA Go! Doing business internationally without hassle
International activities can involve more complex tax rules. PIA Go! provides clear procedures to correctly record foreign purchases, even when your supplier applies the rules incorrectly. The platform guides you step by step when entering foreign invoices. If needed, PIA Go! accountants can advise you to ensure everything is handled correctly in your accounting.
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FAQ
What is an intracommunity acquisition?
It is a supply of goods or services between VAT-registered businesses located in different EU countries. VAT is not charged on the invoice. Instead, it is self-declared by the buyer in the Belgian VAT return.
What should you do if your supplier still charges VAT?
The first step is to request a corrected invoice without VAT by providing your VAT number. If the supplier refuses, you can record the total invoice amount as an expense without Belgian VAT.
Can you recover foreign VAT?
Yes, in some cases. However, the procedure depends on the country and can be complex. For small amounts, it is often not worth the effort. In practice, requesting a corrected invoice is usually the better option.
How do you record a foreign invoice with VAT in PIA Go!?
You record the total amount as an expense without Belgian VAT. You indicate that the foreign VAT is not recoverable. The expense will then be correctly reflected in your profit and loss account.
What if you are VAT exempt?
If you benefit from the exemption scheme, it is better not to provide your VAT number to your European supplier. Otherwise, you may need to submit a special VAT declaration in Belgium, which creates additional administrative work.
How can you avoid errors with international purchases?
Always ensure you correctly provide your VAT number and specify that it is a business purchase. In PIA Go!, explanatory fields guide you when recording purchases from foreign suppliers.
Why are intracommunity acquisitions financially neutral?
Because VAT is reverse charged. You declare VAT as due and deduct it at the same time as input VAT. The financial impact is therefore zero, but correct recording is essential.
Can PIA Go! help if there is an error on a foreign invoice?
Yes. If your supplier applies VAT incorrectly, your PIA Go! accountant can help you process the invoice correctly or determine the best solution.
Is accounting with foreign suppliers complicated?
Not necessarily. PIA Go! is designed for entrepreneurs working with international partners. The platform guides you through recording foreign purchases, and accountants remain available for more complex situations.
Written by Charlotte Backelandt , Marketing & Content Specialist,
reviewed by Tom Castelein, Personal Income Tax Expert.
reviewed by Tom Castelein, Personal Income Tax Expert.