Whether you work within the EU or beyond, it is important to know how VAT, invoicing and local obligations apply to your situation.
First question: where is the service “supplied”?
For cross-border services, tax law determines where the service is deemed to take place. That place decides which country’s VAT rules apply.
For services between companies (B2B), VAT is often shifted to the customer by the reverse-charge mechanism. For private customers (B2C), different rules may apply.
Invoicing rules
Cross-border invoices usually require extra mentions, such as:
- the VAT numbers of both parties
- a note referring to reverse charge where applicable
- correct country codes
Incorrect invoices may cause problems during inspections or be rejected by customers.
Permanent establishment
If you regularly work in another country or maintain staff or infrastructure there, the local authorities may consider that you have a permanent establishment.
In that case, local registration and taxation rules may apply. This is a complex area that should be assessed in advance.
Works on immovable property
Construction-related activities have specific rules within the EU. VAT may be due in the country where the property is located, even if you are established in Belgium.
Outside the European Union
When you work outside the EU, customs and import procedures may also come into play. Contracts and payment security become even more important.
My advice
Cross-border business is perfectly possible, but it pays to prepare.
- check VAT consequences before invoicing
- make sure contracts cover jurisdiction and payment terms
- keep copies of registrations and correspondence
- ask for local advice when activity becomes structural
With good planning, foreign customers become an opportunity, not a source of stress.