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SaaS invoice from US says 'VAT 0%': is that right?

For EU companies buying services from outside the EU, reverse charge applies. The accountant has to handle it cleanly.

Try this first

  1. 1The invoice carries no VAT; that is correct if you supplied a valid VAT number to the vendor.
  2. 2In your books: post VAT as if you had charged yourself (payable) and simultaneously deductible; net zero, but visible on your VAT return.
  3. 3For SaaS from other EU countries: same mechanism, but called 'intra-community service'.
  4. 4If the vendor lacks your VAT number, they bill with VAT; request a correction and supply the right number going forward.
  5. 5Accounting software: set up a separate VAT code for 'reverse charge' so the return computes automatically.

When to bring us in

Doubts on VAT treatment specific to your case: ask your accountant for advice; redoing this with the tax authorities is heavy admin.

See also

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