VAT, Intra-Community, Service or product
European law says that in intra-Community trade we do not charge VAT. The same legislation states that the service is taxed where it is produced. What does this mean? If you own a company in Germany and provide service in another company in Italy, you are obliged to send an invoice and charge VAT. If you are now in Germany and selling a product in Italy, then the invoice may not have VAT, and clearly must be accompanied by shipping documents. These are true when we talk about material, about a product you can “touch”, but when we talk about an intangible product there is a confusion.
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Each state or better each employee of the corresponding insurance office interprets the legislation differently and what is usually done is to pay VAT at the end. To be clear: when we sell a program, a small robot that does what it does, it gets an address from somewhere and puts it somewhere else, it’s a product under European law and you should sell it to your customer without VAT
However, this product may not have supporting documents and there is a confusion to give you a clear answer to this question, we need to know what country we are talking about, how we pay for the product, and about what product we are talking exactly. For sure, there are many gaps in this legislation.
For us here at INTASPA, it is very important to give solutions to our client’s problems and make his daily life easy.