VAT on digital services with EU VAT number

My client has received invoices from quoting an EU VAT number, i.e. a VAT number which starts EU, instead of GB, FR etc. The invoices are for webshoting/domain renewals/email etc.

They have been charged 20% VAT. 

The client is VAT registered, but looking to close the registration down as they no longer want to be VAT registered (the business may be wound up due to other commitments). 

I'm aware that they should have provided their VAT number to in order for the transaction to be zero rated as a B2B transaction, but they're now two VAT returns behind in their submissions and keen to get caught up and close the VAT registration. 

Any advice on how to account for the VAT they've been charged?
Should they report it under the reverse charge principle? 
Is their only option to go back to GoDaddy and request a credit for the VAT and zero rated invoices?

Any thoughts gratefully received.


  • AT is Value-Added Tax, a general consumption tax on a good or service. It is applied to every sale made in the EU. “Consumption tax” means that the tax is paid by the consumer, not by the business who makes the sale. That’s why you, as a business owner, need to know when to charge your customers for VAT!

    As for how much to charge your VAT, this depends. There is no universal EU VAT rate for digital goods. Instead, the rates vary from 17-27% across all the countries. If you’re curious about specific national rates, all of those are listed later on in this guide.