Performances as an artist and how VAT is applied in the E.U.

Performances as an artist and  how VAT is applied in the E.U.

You, as an artist may have performed in a foreign country, or maybe you want to explore opportunities in other countries in the future. We have summarized what is important for you to take into account if you want to expand your services abroad.

As an artist you want to share your work with as many people as possible. Social network sites such as Facebook and Twitter can contribute to that. Through Youtube it is also possible to make your skills known to the world. However, this is not enough. A true artist wants to perform live for his audience. Being close to the crowd that has supported you from the beginning. To make these kind of international performances possible it is, of course, important to manage your finances. How do I bill a foreign client? Is there a distinction between entrepreneurs and private households abroad? What should I pay attention to,  if I hire a foreign artist? These are all question that you may come across.

In 2010 new regulations have been created in the area of VAT-rule making of cultural services. Below you will find a summation of the new regulation that may apply to your situation.

You give performances or hold exhibitions in a EU country.

In this case the rule making of that EU country applies. Ask the foreign tax authorities if you can shift your vat (see appendix). If you can shift your services then the main rule applies: The entrepreneur that invites you and purchases the service must declare the VAT in their own country. Other than that it is important that you:

-Write ‘btw verlegd’(vat shifted) on your invoice;

-Write the ‘btw-identificatienummer’(vat-identification number) on the invoice of your client;

-Do not declare this service in your report turn over tax;

-Do not declare this service in your report intra-community performances;

To check if your VAT-identification number is correct you can use the following site: https://www.btw-nummer-controle.nl/EU_landen

If the foreign tax authorities indicate that the service may not be shifted then you have to:

-Send  your invoice with foreign VAT;

-Register in the EU-country

-Report your turn-over tax in the EU-country

NB: If your client in the EU-country is a private household, then you cannot shift the vat. In this case the service is taxed in the country where the service actually takes place. The law of that country applies. Ask the tax authorities of that country how to report your taxes.

You, yourself hire artists.

Even when you hire artists, you are faced with these regulations. You will have to pay attention to the following

In this case as well the main rule applies: the client reports the vat in their own country.

1. The artist sends you an invoice without VAT. The VAT is shifted to you.

2. you report the intra-community service in your turn over tax.

3. If you are entitled to the VAT deduction, then you report the VAT as advance tax payments.

If you hire an artist in a EU-country then you pay the VAT in that country. You do not report the VAT on your turn over tax. You can digitally reclaim the vat from the EU-country through the site of the ‘Nederlandse belastingdienst’(Dutch tax authorities).