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Comments
I think he clearly stated he charges VAT. However, as he has VAT returns to receive, which take a lot of burocracy, he keeps the VAT and equals the balance.
Correct, and in most developed countries as well.
http://ec.europa.eu/taxation_customs/common/travellers/leave_eu/vat_refund_index_en.htm
WTF! really?
It makes sense, as someone doing business in a country you are not expected to know too fast the laws in another country, even if you have customers (but not registered branch) there, unless your own fiscal authorities are taking steps to inform you.
http://ec.europa.eu/taxation_customs/common/travellers/leave_eu/vat_refund_index_en.htm
Indeed, it was always the case, it is like in the case of export, but many people dont bother.
Yes, you only have to pay to the state whatever VAT you charge on top of what you pay. Since I do not charge VAT from the main business (IT services) as it is export B2B in other EU countries, I have 0 to pay and a lot to charge the state, because the company has various expenditures, like hosting, equipment, training, financial services, etc, and pay VAT for those. So, the VAT I have to pay is negative, therefore I found a way to balance it by selling something in Romania, importing without VAT from EU, a kind of reverse of the main business, of course, the VAT due is still in the red, at some point will have to settle it, but it is too much paperwork and I try to do it only when the amount will be worth the effort.
Linode still not charging VAT...
@Maounique thanks for explanation.
@tehdan about time they start. Too big to mess around plus they make EU presence which makes them directly vulnerable
We're based in Norway, and thus not being a member of EU does not charge VAT for customers outside of Norway.
@Maounique when you go to ask for recuperating vat , the next day you have inspection so if you can avoid this is better.
@apollo15 - I disagree, I think doing the right thing. Its a crazy, crazy law they haven't even tried to enforce /within/ the EU yet.
Around £85k I think it was last time I checked.
Since I only sell to a few friends these-days and had one based outside the UK it was easier to drop them as a customer than it was to worry about the stupid new VAT requirements for selling to the EU.
Tax is just such a headache why can't they ever make it simple
They have accountants to make it easy, a bit like computer goo-roos make IT easy.
Nah, nothing to hide, I am also a trained accountant and was always conservative, if they want to find something they will, but will not hold in court. I will not live in fear.
It's fair within EU. Everyone pays VAT to his own country, as opposite to some countries with lower VAT having a better position than countries with higher VAT.
The guy is right. And they will do everything to find anything to fine you and reduce the amount they have to return.
Yes, they would, however, it will not hold in court, any expertise will prove them wrong, besides the fact I am a trained accountant, I also have one to do my taxes, between us, it is highly unlikely to have issues, especially at a relatively low number of operation types.
@Francisco avoiding answer? You are busy trashing other providers for spamhaus listings and IP hording yet you run a criminal ORG that owns EU more then half year VAT, doesnt even bother to get a vat number. VAT evasion is serious crime!
Canada has made no mention of VAT payments to us, so we're not worry about it.
I think you got things a little crossed upstairs if you think multiple organizations proven to be selling space to spammers and getting punished for it, is on the same calibur as someone 'maybe' owing a few hundred to random EU nations.
As I said, if and when this comes up, we'll simply eat the cost for our customers and not pass the costs on to them. We have more than enough headroom in our margins to do that without much worry.
Francisco