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Client billing, hosting tax?


I was wondering how much tax you charge your client when setting up a client billing ? Can we do reverse charge ? How does that work and what are we supposed to charge ? Let’s say I am Germany based and set up a client billing hosting for a client based in Switzerland. In Germany taxes are now 16%, but in Switzerland taxes are 7%… how should we proceed as designers ? Do we even need to tax our client on hosting since the hosting is a service being rendered by Webflow on our behalf and in the USA ?

Here is my site Read-Only: LINK
(how to share your site Read-Only link)

Hi Anthony,

Did you receive any answer on this from the Webflow team?

As a company within the EU, I think we have to pay the local tax rate to the tax office. In case of “client billing”, the respective client would have to do this too. Regardless of client billing, Webflow needs to show the sales tax if you are based in Germany (or other EU countries):

Services provided electronically, telecommunications, radio and television services (TBE services) are generally taxable at the service recipient’s location (recipient location). This applies regardless of whether the services are B2B services to business operators (section 3a, paragraph 6 UStG) or B2C services to non-business users (section 3a, paragraph 13 UStG). Microenterprises are exempted from taxation at the recipient location.

If services are being taxed at the recipient location, businesses must determine for each individual service where the customer is located.

(source: Cross-border services)