Comments on: Don’t Worry, We’re Still Here!

By: Rob

Rob — Mon, 04 Mar 2013 23:15:20 +0000

See the 4th and 5th paragraph from this EU website – I think it gives you a definitive answer. One rule for B2C and one for B2B.
You can’t charge EU businesses VAT.

http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/e-services/article_1610_en.htm#a1

I’ll buy anyway, and seek a $50 refund for the incorrect collection of VAT. Small businesses over here pay a thing called flat rate VAT, which means we pay a lower VAT level … but it also means we can’t claim back VAT. That’s why it’s important.

By: Rob

Rob — Mon, 04 Mar 2013 22:55:32 +0000

Nick – I’ve checked the Cooley link you give and I agree with Steve. For B2B you can’t legally charge UK VAT. Can you read the first few lines of the Cooley link and you’ll see. So what do we do? Please advise.

By: Steve

Steve — Fri, 01 Mar 2013 12:10:45 +0000

Sorry Nick you are wrong, you cannot charge VAT to EU BUSINESSES, only private individuals.

In fact it says so clearly in your own sources, you need to re-read them!

http://www.cooley.com/57529

“The new requirement, known as Council Directive 2002/38/EC, applies only to sales by businesses to individual consumers (“B2C” sales). Sales between BUSINESSES (“B2B” sales) are not covered by the directive”

and http://bit.ly/RlWcCN

“VAT On e-Services are a special Value Added Tax (VAT) scheme for non-EU businesses providing electronically supplied services to EU consumers (that is, private individuals and NON-BUSINESS organisations).”

further on… “Please note that the scheme does not apply to supplies to BUSINESS customers in the EU”

I am trying to buy your developer package but cannot find a way to do so as a business, i.e. without VAT.

How do I proceed?

By: Nick

Nick — Sat, 13 Oct 2012 17:44:43 +0000

We definitely are required to charge VAT. I don’t think some random opinions on an Internet forum are of much value. Ask a qualified EU tax professional that is versed in international matters.

If fact, if you continue reading that thread, a link to the real law is posted: http://www.cooley.com/57529

We collect VAT and submit it through a special system controlled by HM Revenue Service:

http://bit.ly/RlWcCN

http://bit.ly/W51pVv

By: Kris Koster

Kris Koster — Sat, 13 Oct 2012 12:02:35 +0000

Actually this is wrong. Digital goods or not, you can’t charge VAT unless you are a UK registered company. What are you doing with the VAT funds you are collecting on behalf of HMRC?

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=257758