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TAX on Customer invoice who is not from your country?
DewlanceVPS
Member, Host Rep
in Providers
Hello,
What you will do If your Government start charging tax on your foreigner servers? Will you charge tax to foreigner customer? (I know this is weird). But still want to know your input.
Comments
Talk to your accountant.
Not related to accountant, I want to know your thoughts. I mean, Is this ethically right? and your customer will be even pay invoice with TAX? (I mean why you will pay tax to Foreigner company who is not from your country and not even have a office in your country).
Of course it is. You already have to charge VAT for all sales to EU non business Customers (or business without VAT ID) at their local rate via MOSS.
As @trewq said, contact your accountant. You'll have to figure out how much tax you already have overdue for the year or so this system is already in place.
Well i have a question. When i host Server and Customer use the Service -> pay Tax etc. who i must give the tax ?
Yes of course unless you want to cover all the taxes.
Isn't this what Vultr is now doing to its Australian customers
I think the OP is talking about the new GST implementation in India. From what I know, that doesnt apply to customers outside India. So he doesnt have to charge them any tax.
Depends on like a million things - if your customer is located in Netherlands, you have to pay dutch tax - and that either goes via your local government using the MOSS system, or you register in all EU member countries and declare it individually.
Only if their company is inside the EU. An Indian company, under most circumstances, is at this time not required to charge VAT for services provided to a dutch customer.
Yes? Anything else would be simply illegal?
Poland does this; Poland charges everyone except EU business with VAT VAT. Including any non EU company/resident.
We didn't charge tax from foreigner customers because government is not charging us tax on foreigner purchases & sales.
On local purchases, We need to charge tax as we need to pay tax on local purchases.
If you look at the actual EU directive - then yes, even an indian company would have to charge VAT for electronic services
However it's up to EU and the indian government in this case to enforce that this takes place - which is not likely to happen for smaller companies - because it would bring no benefit.
This only applies to electronic services inside the EU, if they sell a Dutch person a server in India there is absolutely no legal reason to charge VAT (and even if there would be, which the EU likes to say at times, there is no way to enforce this on any country larger than the EU politically).
GST is not charged on foreign customers, you will only company income tax overall..
In regards to the electronic services tax in the EU, this is enforced by individual EU countries that you owe money to, and yes, if you're say US based and your company is selling to say a private person in the Netherlands, you have to charge him VAT and pay this VAT to NL Goverment either through MOSS or individual tax registration in the NL.
Internationally, you have to charge VAT and pay to that company's government. Well, you're supposed to. Technically, even sales tax in the US is supposed to be charged in states which have it- if you are selling something FROM a state with sales tax to someone in an untaxed state, it's called a USE tax, rather than a SALES tax. We have pretty simple policies, though.
Ask your accountant. After all that is why you pay him, to save you money.You know the loopholes and stuff that corporate use every day...
I'd tell them that move is cold as ice, they should stop playing head games with me, and their tax policies are giving me double vision.
Reverse VAT in Portugal
I believe OP is based out of India. From what I understand of his posts, none of the DCs he uses are in India. Unless his customers are based out of India/use payment methods like a credit card issued by an Indian Financial institution, he does not need to pay the newly imposed GST.
This is a really good read to help you figure out when tax is applicable or not. https://www.cuelinks.com/blog/impact-gst-bloggers-affiliate-marketers-india/
Yello. Yesh. You need charge?
Oh. You have charge (Chutia)?
Yes, we fix. My name? Bill Brown.
lol
I'll charge customers taxes where I'm legally obligated to do so and can be held responsible, in any meaningful way, for not charging it. Can't fine me something I have to pay or jail me? Then it ain't your money
You should charge cookie taxes - good way to get cookies to be honest
Company based in India, Use Colocation in USA and I sell it to outside of my country. (Not in India).
Company based in India, Use Colocation in USA and I sell it to outside of my country. (Not in India).
Talk to your accountant.
See the link I posted above. It looks like your place of service is not India. You do not fall under the purview of GST. However, confirm this with an accountant.
You do not charge GST to foreigners ...
I talked to my Accountant, I don't need to pay GST for income from International customer but I have to pay tax on purchase. (Purchasing/leasing server, domain from other country)
I will not charge tax and increase price by $0.50 to $1 on each product to manage TAX.