I’d like to resell a service with low margin. Basically I’d like to buy a service from a friend company in Italy and to sell it to another company in EU (which is my customer)… but I have no interest to get an extra margin for it… I just like to be a reference for my customer.
Here’s my question: if I buy this service from Italy at 1000€ (no VAT, because it’s another EU state), then I sell it for 1000€ (still no VAT, because it’s another EU state) … tax wise shall I add something in the sell invoice, is there something I’ll find myself paying extra in taxes?
Make sure you’re VAT registered and your customers are VAT registered before you enter into this transaction. If you don’t have VAT registration your friend will be obliged to charge VAT on the sale to you, even though they’re in Italy.
Once you do this, it’s a simple case that you record your income as the amount receivable from your customer, your expenses are the amount you pay your friend, there should be no tax payable as you make no profit on this.