Value-added tax (VAT) in self employed contract

[mdouble]

Dear All,

I need a help regarding VAT (Value Added Tax). I got an offer from company based in EU. While signing agreement I realised that company that will hire me is agency located in Malta.

Salary given by the company is let say net, however in my opinion should be called gross, because all taxes are on my side.

Summarizing, contract between Maltian agency and my service company was signed.

The question I have is should I pay and how much taxes after receiving money on my bank account. Of course insurance and income tax is on my side in country where my service company exists. But what about VAT?

So far, I was told in National Tax Office, that while flying outside of my home country, I don't have to pay tax in country of my residence, but perhaps in country where I am going to fly. In this particular case base will be in Denmark.

Does any of you have idea if I have to pay VAT 25% (in Denmark) from my salary or may I somehow avoid in as a pilot physically not being in one country doing my job? Believe me, officials have no idea about that. Some of them suggested me that if I fly from A point to F point overflying B, C, D, E countries I should divide VAT for all those countries and pay respectively...

Maltanian agency claims that (most probably) I do not have to pay VAT.

I will appreciate any help,
M.

[wondering]

Check crossborder transactions in the EU. You donīt put VAT on your invoice if you and your employer have an EU VAT number. There is a special wording you need to put on your invoice if you are doing that. I just cant be bothered to find it right now.

[mdouble]

Dear wondering, if you find these words I will really appreciate sharing! Thanks a lot

Originally Posted by wondering

Check crossborder transactions in the EU. You donīt put VAT on your invoice if you and your employer have an EU VAT number. There is a special wording you need to put on your invoice if you are doing that. I just cant be bothered to find it right now.

[FlightDetent]

Get a tax advisor. The typical ending with a good one is
- SOC SEC / HEALT INSUR. in Poland
- INCOME TAX in Poland
- NO VAT at all (as long as you do not provide services in Poland)

If you want those to be in Poland. There is a LOT of paperwork, even registering for an EU VAT number to go with the above.

Paying income tax in Denmark due to Denmark base is nonsense - for a contractor.

[london_heathrow]

Originally Posted by wondering

Check crossborder transactions in the EU. You donīt put VAT on your invoice if you and your employer have an EU VAT number. There is a special wording you need to put on your invoice if you are doing that. I just cant be bothered to find it right now.

<br /><br />The mechanism you're looking for is "Reverse Charge" You need to be VAT registered to do this.<br /><br /><br />Not sure where the "place of supply" is.


I don't have enough posts so can provide a URL but just google Reverse Charge VAT services.