Quote:
Originally Posted by windstorm
Hey there! I know there are many paysite owners here that have companies in EU.
Could you please tell me how you deal with CCBill regarding VAT?
Did you get a contract signed with CCBill EU? I couldn't get one...
Do you pay VAT for the money you get from CCBill?
I am really confused how to deal with this situation, and I am not sure also if EU 112 Directive applies to this situation.
Thanks in advance!
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It's kind of a "how long is a piece of rope" question. Theory is this:
As a EU based biz you net a VAT ID # and charge your customers VAT. The percentage and exact procedure depends on the country you are based, so are the submittal procedures.
On the other hand you can claim VAT for business expenses you have. Let's say if you charge your customers 1.000 Euro, 190 Euro of which is VAT, and you buy a computer for 1.000 Euro (with 190 Euro VAT) as a business expense, the amount you owe to the tax authority is 0.
If you biz-expense VAT exceeds your charged VAT in a billing period, you can claim that VAT back in your VAT return. If you are a new business and claim lots of VAT in the first year you most likely will get audited. If your collected VAT exceeds the amount spent you need to submit that amount to the tax authorities.
Reality is this:
Billing companies simply charge and withhold the VAT, and if you don't have a tax ID # and can't file a claim you are fucked out of 16-22% of your revenue.