Quote:
Originally Posted by Jenny S.
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.
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This old chestnut again:
If you are operating from the EU then you can only sign up to ccBill EU.
If your revenue is above a certain threshold then you must register and charge VAT on EU sales (not on sales to the rest of the world). You can elect to register voluntarily if your revenue is below the threshold level.
If you are registered then you can reclaim the VAT you have paid on EU purchases.
ccBill do not retain the VAT element of your sales. They pay you the gross amount less processing fees.
EU directive 112 does not apply. I dont know where you have plucked that one from. If you are in the EU and registered for VAT then you pay it on all EU sales - Period!
Dont believe a lot of the bullshit spouted on here.... if in doubt get an accountant to check it out.