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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15330
Experience:  International tax
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If we made ships evaluation for Croatian company we assume

Customer Question

If we made ships evaluation for Croatian company we assume that we should include VAT
in our Invoice. Croatian company will pay the invoice including VAT.
Colected VAT will be included in our VAT Return.

Croatian company is saying that we should not include VAT in our Invoice because Croatia is now ( from 1st July 2013) member of the EU and that they must calculate and pay Croatian VAT.

What of the above is correct.

Thanks [email protected]
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello and thank you for using Just Answer,
VAT is complicated when dealing with other countries in or out of the EU. Goods supplied between taxable persons (or VAT registered traders) are exempted with a right to deduct the input VAT (zero-rated) on dispatch if they are sent to another Member States to a person who can give his VAT number in another Member State. This is known as an "intra-Community supply".
Services are taxed in the member state where the service is supplied.
If they provided a VAT number then the invoice would not have shown the VAT.
You may find this study helpful
http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/import-vat-collection-rules_en.pdf

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