EU Reverse-Charge VAT for Solo SaaS Buyers: The Zero-Euro Math Most Devs Miss
Solo SaaS buyers in the EU can avoid paying VAT on foreign services by utilizing the reverse-charge mechanism. This process involves self-accounting for VAT on imported services and then reclaiming it as input VAT, resulting in a net zero cost. To qualify, businesses must possess a valid EU VAT identification number and be registered for standard taxation rather than the small-business exemption, which prevents VAT reclamation. AI
IMPACT Explains a tax mechanism that can reduce costs for businesses using foreign AI tools.