Are you purchasing goods or services from suppliers based in a different EU country than the one where you're registered as a self-employed professional?
Here's how to correctly record those expenses in Accountable, whether your supplier is a freelancer or a company.
💰 What is the EU reverse-charge mechanism?
Purchases between businesses or freelancers based in two different EU countries fall under the EU reverse-charge system.
This means:
As the customer, you don’t pay VAT to your supplier.
As the supplier, you don’t charge your local VAT to clients in another EU country.
Your supplier can verify the validity of your VAT number via the EU VIES tool.
👉 In practice, if your VAT number is mentioned on the invoice, your supplier issues it without VAT
🧾 How to record an EU purchase invoice in Accountable?
Go to Expenses > Upload a new expense, and select the invoice.
Click on Review now.
When asked “Is this a proper invoice?”, answer Yes if your VAT number is shown on the invoice.
Category: Select the one that matches the nature of the purchase. For example:
➤ Technology & Communication > Technology service or software.VAT rate on the document:
➤ Select 0%
When asked “Why is there no VAT on this expense?”, choose:
➤ “This is a purchase from outside the EU”
📋 Summary table – How to record an intra-EU purchase
Step | Action |
1. Upload the invoice | 📥 Go to Expenses > Upload a new expense and select the file. |
2. Validate the invoice | ✅ When asked “Is this a proper invoice?”, select Yes if your VAT number is shown. |
3. Choose a category | 📊 Select the category that fits the type of purchase (e.g., Technology service or software). |
4. Set the VAT rate | 🧮 Choose 0% VAT. |
5. Explain the absence of VAT | ✏️ Select “This is a purchase from outside the EU”. |
6. Set business use | 💼 Indicate the percentage of professional use, percentage of the expense. |
7. Save | 💾 Double-check and save the expense. |
📊 Impact on your tax returns
1. VAT return
If recorded correctly in Accountable, intra-EU purchases are automatically placed in the correct boxes of your VAT return.
Here’s how those expenses appear:
🛍️ Purchase of goods (products, materials, etc.)
Grid 86 – Intra-EU reverse-charge purchases of goods
Grid 81 – Raw materials and goods for resale
Grid 55 – VAT due on intra-EU reverse-charge purchases
Grid 59 – Deductible VAT on purchases
Grid 82 – Miscellaneous goods & services
Grid 83 – Investment goods
📟 Purchase of services (e.g. software, consulting, etc.)
Grid 88 – Intra-EU reverse-charge purchases of services
Grid 55 – VAT due on intra-EU reverse-charge purchases
Grid 59 – Deductible VAT on purchases
Grid 82 – Miscellaneous goods & services
💡 Good to know:
These are reverse-charge operations, meaning they cancel each other out for VAT purposes: The VAT due (Box 55) is offset by the deductible VAT (Box 59), provided the expense is 100% professional.
🔗 Accountable handles all the calculations for you automatically.
2. Income tax return
In your income tax return, the net amount (excluding VAT) of the expense is deductible in proportion to its % of professional use (e.g., 100%, 75%, etc.).
❓ Frequently Asked Questions
What if VAT was wrongly charged on the invoice?
Contact your supplier and ask for a corrected invoice without VAT. If your VAT number is valid, they shouldn’t charge local VAT.
Can I deduct this expense in my VAT return?
Yes, as long as the expense is recorded under the correct regime, it will be included in the appropriate boxes of your VAT return.
❓ Need help? Feel free to reach out to us!