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Perhaps, I assume it depends on the country and your contract?
I invoice Sweden in GBP regularly and the company that pays me pays VAT at 25% in Sweden, but I have to zero-rate my invoice to them (B2B) and then need to document zero-rated VAT in the UK as otherwise HMRC would default to requesting VAT at 20%.
If the situation was reversed then I believe the Swedish company would zero-rate their invoice to me and my company would be 'Reverse Charged' as the buyer of foreign services and would then have a 20% VAT liability in the UK which could not be recovered.
I may have gotten something wrong, but this is my current understanding!
JonoMarshall
Matt101
Ok thanks, NL company mentioned paying in Euros but I'll ask them about paying in GBP.
So not VAT to pay HMRC or NL equivalent? I thought one of them would want their slice?