eSIMs and the digital-nomad VAT question (and other paperwork)
If you're billing eSIMs to a company, the tax treatment depends on three things and one of them probably surprises you.
Digital nomads ask us this a lot: "Can I expense the eSIM, and how does VAT work?" Short answer: yes, expensable, and the VAT treatment depends on who's selling, who's buying, and where the data is consumed.
The three variables
- Seller location — where the eSIM provider is registered. Airalo: Singapore. Holafly: Spain. Redteago: HK / cn. Ubigi: France.
- Buyer location — your billing address. The provider's VAT logic uses this for B2C, almost universally.
- Consumption location — where the data is actually used. Mostly irrelevant for the seller's invoice; relevant for some employer claim policies.
For most of us as freelancers buying eSIMs, the seller charges VAT at our billing-address rate. If you're VAT-registered (EU 1-person LLC, UK Ltd) you can input-claim it back on the next return.
What changes for businesses
- B2B between EU entities: reverse-charged. The provider issues a zero-VAT invoice; you self-account in your country.
- B2B between non-EU and EU: also typically zero-VAT.
- B2C (the usual freelancer case): VAT at buyer rate.
You need a valid VAT number on the order for any of the B2B treatments. Most provider websites accept it on the billing form.
Receipts that actually qualify
Some providers email a "consumer receipt" with no VAT detail, and reviewers reject it. Look for these on a real invoice:
- Seller VAT number
- Buyer VAT number (if you provided one)
- VAT amount, breakdown by rate
- Service description (data, GB, dates)
If the receipt only shows the total, ask the provider's support — they'll usually re-issue.
Country-specific tripwires
- Brazil — local data services have unusual ICMS rules. Most travel-eSIM providers just don't sell there.
- India — GST applies; some providers' invoices won't satisfy Indian audit.
- EU OSS — sellers outside the EU using OSS to charge EU VAT must declare in their home jurisdiction. If your audit asks, the invoice should reference OSS.
This is not tax advice; it's what we've observed across hundreds of business-traveler accounts. Ask an accountant for the call on your specific case.