European Union clients
How to hire us from the EU
VAT, withholding tax, invoices and payment, step by step, for European companies buying services from Agathas Web, a company established in Brazil.
Updated October 2026
- VAT
- We invoice without VAT. Your company self-assesses it (reverse charge).
- Withholding
- In Spain, non-resident income tax may be withheld: max. 15% with our tax residence certificate; 24% without it.
- Documents
- Commercial invoice in euros, Brazilian export service invoice (NFS-e) and tax residence certificate.
- Payment
- SEPA transfer in euros to an account in the company's name, shown on the invoice.
1. VAT: reverse charge
When a company established outside the EU supplies services to an EU business (B2B), the place of supply is the customer's country, and the customer, not the supplier, accounts for the VAT. Our invoices therefore carry no VAT and include this statement:
VAT not included — reverse charge: VAT to be accounted for by the recipient (Articles 44 and 196, Council Directive 2006/112/EC).
What your company does
- Records the invoice and declares the VAT as both output and input tax in its periodic return (in Spain, form 303). With full deduction rights the net effect is zero.
- Documents the transaction under its local invoicing rules. Your adviser will confirm whether a self-billed invoice is required.
- Sends us its exact VAT number and legal name for the invoice.
This applies to businesses and professionals. We do not sell to EU consumers: that would require us to register for the OSS scheme and charge the consumer's local VAT.
2. Withholding tax (Spain)
The Spain–Brazil double tax treaty (1974) treats services and technical assistance as royalties (Article 12 and point 5 of the Protocol). When paying us, your company may therefore have to withhold Spanish non-resident income tax (IRNR):
| Situation | Max. withholding | Legal basis |
|---|---|---|
| With our tax residence certificate | 15% | Treaty, Art. 12(2)(b) and Protocol, point 5 |
| Copyright (works, content) | 10% | Treaty, Art. 12(2)(a) |
| Without certificate | 24% | Spanish IRNR law, Art. 25(1)(a) |
- Before the first payment we send our tax residence certificate issued by Brazil's Receita Federal, valid for one year.
- Your company pays the withholding with form 216, reports it in the annual form 296, and sends us the receipt.
- Before signing, we will agree whether quoted amounts are before or after withholding.
- Outside Spain, each country has its own treaty with Brazil (or none). Your adviser will confirm the applicable rate.
3. Payment
- SEPA transfer in euros to the account on the invoice, always in the name of Agathas Web. Your bank will check that the name matches the account holder.
- We never ask for payment to personal accounts or in crypto-assets.
- Please quote the invoice number in the payment reference.
4. What we do in Brazil
We issue the Brazilian electronic export service invoice (NFS-e) and report the income in Brazil. Service exports are exempt from the municipal service tax (ISS) and from PIS/Cofins. You receive a copy for your records; no action is needed on your side.
5. Step by step
- Send us your legal name, VAT number, address and billing email.
- We send the quote (no VAT, with the reverse-charge statement) and, on acceptance, our tax residence certificate.
- We issue the commercial invoice in euros and the Brazilian export NFS-e.
- You pay by SEPA, applying any withholding due, and send us the form 216 receipt if you withheld.
- You self-assess the VAT in your periodic return.
References
| Law | What it says |
|---|---|
| Directive 2006/112/EC | Art. 44: B2B services are supplied where the customer is established. Art. 196: the customer is liable for VAT. |
| Law 37/1992 (Spanish VAT) | Art. 69.Uno.1º (place of supply) and Art. 84.Uno.2º (reverse charge). |
| Spain–Brazil tax treaty | Art. 12 (royalties, 10%/15%) and Protocol, point 5 (services and technical assistance). |
| Royal Legislative Decree 5/2004 (IRNR) | Art. 25(1)(a): 24% general rate for non-EU/EEA residents. |
| Order EHA/3290/2008 | Forms 216 and 296, and proof of reduced withholding with a residence certificate. |
| LC 116/2003 (Brazil) | Art. 2(I): no municipal ISS on service exports. |
| LC 123/2006 (Brazil) | Simples Nacional: export revenue free of PIS/Cofins and ISS. |
Informational guide. It does not replace advice from your accountant or tax adviser, who should confirm the treatment in your specific case.
Questions? Write to [email protected].