How do EU companies with sites get around charging VAT?

**Ethersync** · 04-25-2008, 11:09 AM

Anyone...?

**frank7799** · 04-25-2008, 11:46 AM

Originally posted by Ethersync

Anyone...?

It depends on various variables. The locaton of the customer, location of service providing company and location and agreement of billing company and the goods or services provided.

If you are a service provider located in the EU and do your own billing for services which are delivered online (e.g. download of movies), you have to charge all customers from the EU with VAT. No VAT for customers in foreign countries outside the EU in this example.

Even service providers located outside the EU have to charge VAT for EU customers and pay it to the country the customer is living in. The service provider has to register in one of the EU countries of his choice and has to pay collected VAT to this country. There is a special claering system for this law. But I can´t see anyone doing this and there is no way to collect it.

**camuk19** · 04-25-2008, 11:49 AM

Add the % onto the price I guess..or take out the % of your turnover. Something fun I guess.

**Ethersync** · 04-25-2008, 02:17 PM

Originally posted by m4yadult

It depends on various variables. The locaton of the customer, location of service providing company and location and agreement of billing company and the goods or services provided.

If you are a service provider located in the EU and do your own billing for services which are delivered online (e.g. download of movies), you have to charge all customers from the EU with VAT. No VAT for customers in foreign countries outside the EU in this example.

Even service providers located outside the EU have to charge VAT for EU customers and pay it to the country the customer is living in. The service provider has to register in one of the EU countries of his choice and has to pay collected VAT to this country. There is a special claering system for this law. But I can´t see anyone doing this and there is no way to collect it.

So an EU company that uses a 3rd party processing company like CCBill, LocalBilling or Epoch does not need to charge VAT, but an EU company with it's own merchant account does?

Does anyone know any examples of pay sites owned by EU companies that charge EU members VAT?

**Bossman** · 04-26-2008, 07:38 AM

Originally posted by Ethersync

Does anyone know any examples of pay sites owned by EU companies that charge EU members VAT?

We pay VAT for every european sale we make on our paysites. The VAT rate is not shown, but included in the price.

**XMaster** · 04-26-2008, 07:52 AM

Originally posted by Bossman

We pay VAT for every european sale we make on our paysites. The VAT rate is not shown, but included in the price.

This is how it works yes.

**Cardinal_Sin** · 04-26-2008, 08:20 AM

Originally posted by Bossman

We pay VAT for every european sale we make on our paysites. The VAT rate is not shown, but included in the price.

Unfortunately this is true -

**Ethersync** · 04-26-2008, 08:51 AM

Originally posted by Bossman

We pay VAT for every european sale we make on our paysites. The VAT rate is not shown, but included in the price.

Do you get this refunded back from the government?

**DamageX** · 04-26-2008, 08:59 AM

Originally posted by Ethersync

Do you get this refunded back from the government?

Why would the service provider get the VAT refunded? VAT is a sales tax, paid by the end-customer. It has nothing to do with the seller, aside from the fact that the seller is legally obligated to collect it and pass it on to the tax authority.

How do EU companies with sites get around charging VAT?

How do EU companies with sites get around charging VAT?

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