VAT 0% for EU Companies: How Reverse Charge Works When You Buy Workwear

TrustGear is operated by TrustBau OÜ, a company registered in Estonia. When a VAT-registered company in another EU country buys from us, the sale is an intra-Community supply of goods. The invoice is issued with 0% VAT and the buyer accounts for the VAT in its own country. This is called the reverse charge.

Who gets VAT 0%?

• A company with a valid EU VAT number (e.g. FI12345678) registered in an EU country other than Estonia
• The goods are delivered to that other EU country
• The VAT number is valid in the EU VIES system at the time of the order

Estonian companies and private customers pay VAT as normal.

How to order without VAT

1. Add the products to the cart and go to checkout.
2. Enter your company name and VAT number in the VAT field.
3. The VAT number is checked automatically and VAT is removed from the total.

Tip: check your number first in the VIES service. A Finnish Business ID (Y-tunnus) 1234567-8 becomes the VAT number FI12345678 — country code, no hyphen.

How the buyer reports it (Finland)

In Finland the purchase is an intra-Community acquisition (yhteisöhankinta). In the periodic tax return in MyTax you report the value of the purchase and calculate the Finnish VAT on it. If the workwear is used in VAT-taxable business, the same amount is deducted at the same time, so the net cost is zero. Latvia and Lithuania follow the same EU rules.

What the purchase document shows

The document for a reverse-charge sale shows both VAT numbers — ours and yours — and a note that the supply is exempt intra-Community supply with VAT payable by the customer. Keep it with your accounts.

Why it matters for crews

For a company buying kits for a whole crew, VAT is up to a fifth of the price. Ordering with a VAT number keeps the cash in the business instead of waiting for a deduction. See also our page for companies and the ready workwear kits.

This is general information, not tax advice. Ask your accountant if you are unsure how to report the purchase.