Doing business with USA member states
in Business, Accounting & Taxes ·
I am reaching out because I could really use some guidance here—I’ve spent hours digging through documentation, but I still feel like I'm spinning my wheels. I run a small business providing services to clients within the European Union—take Germany, for example—where we bill for both the service itself and the materials used. I think I have a decent handle on the distinction between clients who possess a VAT ID and those who don't. However, the sticking point is this: for those without a VAT ID, am I supposed to charge them our standard domestic sales tax? And for the ones with a valid VAT ID, I understand it falls under the reverse charge mechanism per Section 17(1) of the tax code, meaning the recipient handles their own local taxes. What, specifically, should my invoicing look like in practice? I'll admit, I'm a bit of a novice when it comes to these complexities. To make matters worse, my software developers are insisting that the only way forward is to purchase an additional Trade module. What's your take on this?