EU Paysites and VAT - GoFuckYourself.com

Brown Bear · 12-09-2004, 12:38 PM

Do EU based paysite businesses have to charge VAT to EU customers?

Brown Bear · 12-09-2004, 01:12 PM

directfiesta · 12-09-2004, 01:21 PM

You are based in the EU , you have tocharge the VAT to all EU customers, but not to non-EU customers.

You are based outside the EU, using a EU processor, you charge no VAT nowhere.

Brown Bear · 12-09-2004, 01:25 PM

Quote:

Originally posted by directfiesta
You are based in the EU , you have tocharge the VAT to all EU customers, but not to non-EU customers.

You are based outside the EU, using a EU processor, you charge no VAT nowhere.

According to this article, businesses anywhere in the world have to charge VAT for their EU customers:

http://www.internetnews.com/ec-news/article.php/2194111

directfiesta · 12-09-2004, 01:32 PM

I use a EU biller . They split the signups by origin :

EU
Non EU
Canada ( my place )

They don't charge any taxes. When they make their invoice for their fees, they also do not charge any taxes ...

They are BIG , but I hope they know what they are doing ....

directfiesta · 12-09-2004, 01:36 PM

Quote:

Originally posted by Brown Bear
According to this article, businesses anywhere in the world have to charge VAT for their EU customers:

http://www.internetnews.com/ec-news/article.php/2194111

Scary article ....

BTW, what does the non-EU company do with the taxes collected ? Remit them to each government...

Webmaster = taxman

Brown Bear · 12-09-2004, 01:43 PM

Quote:

Originally posted by directfiesta
Scary article ....

BTW, what does the non-EU company do with the taxes collected ? Remit them to each government...

Webmaster = taxman

I dunno

I've read that article and many others like it, and it all makes no sense to me.

doober · 12-09-2004, 01:57 PM

Quote:

Originally posted by directfiesta
I use a EU biller . They split the signups by origin :

EU
Non EU
Canada ( my place )

They don't charge any taxes. When they make their invoice for their fees, they also do not charge any taxes ...

They are BIG , but I hope they know what they are doing ....

Mind sharing which EU biller you are referring to?

sweandy · 12-09-2004, 03:54 PM

I think it's been like this since 2003/01 or so. Companies in the US for example must pay sales tax on any digital items they sell to EU customers. To which tax entity in EU they choose (different rates, upto 25%).

We with EU companies must adon the sales tax for the country we are present on each EU purchase. Either higher price or less profit.

Apache_A · 12-09-2004, 04:01 PM

This is really a legal situation that needs a couple of test cases.

If you buy physical goods outside the EU and get them imported then you have to pay VAT. If you buy something within the EU from a company registered within the EU then you should pay VAT (though there is the possibility that is isn't visible).

BUT. If your with in the EU and you purchase goods or services that never enter the EU... what happens then? people can only really speculate as as far as I know there has been no legal cases to set the presidence

BRISK · 12-09-2004, 04:08 PM

Quote:

Originally posted by sweandy
I think it's been like this since 2003/01 or so. Companies in the US for example must pay sales tax on any digital items they sell to EU customers. To which tax entity in EU they choose (different rates, upto 25%).

We with EU companies must adon the sales tax for the country we are present on each EU purchase. Either higher price or less profit.

I seriously doubt any US companies (or other non-EU companies) are paying the VAT that the EU says they have to pay.

sweandy · 12-09-2004, 04:12 PM

Quote:

Originally posted by BRISK
I seriously doubt any US companies (or other non-EU companies) are paying the VAT that the EU says they have to pay.

I don't think many do or even know about this really. But i think it's on trial for some years now. Possibly will be some major courtcases like Amazon.com and such big sellers which can't escape the taxes today.

sweandy · 12-09-2004, 04:14 PM

Quote:

Originally posted by Apache_A

BUT. If your with in the EU and you purchase goods or services that never enter the EU... what happens then? people can only really speculate as as far as I know there has been no legal cases to set the presidence

You mean like i purchase some pics in the us, download to my us server and use the there only or something. They will tell you to pay the tax in which your company is. If it's a EU owner for a US company then it probably will be tricky and you wouldn't need to pay the tax.

Jizar II · 12-09-2004, 04:14 PM

fuck VAT

BRISK · 12-09-2004, 04:14 PM

What happens if a webmaster in the EU buys a banner advertising on a US website?

Is that US website supposed to pay VAT?

Apache_A · 12-09-2004, 04:17 PM

Quote:

Originally posted by sweandy
I don't think many do or even know about this really. But i think it's on trial for some years now. Possibly will be some major courtcases like Amazon.com and such big sellers which can't escape the taxes today.

Acutally I belive the US' view is, we don't give a fuck about other people taxes and they can sort it out at their customs

Apache_A · 12-09-2004, 04:18 PM

Quote:

Originally posted by BRISK
What happens if a webmaster in the EU buys a banner advertising on a US website?

Is that US website supposed to pay VAT?

No... why should it?

BRISK · 12-09-2004, 04:20 PM

Quote:

Originally posted by Apache_A
No... why should it?

because the person buying it was in the EU

http://www.internetnews.com/ec-news/article.php/2194111

Apache_A · 12-09-2004, 04:22 PM

Quote:

Originally posted by sweandy
You mean like i purchase some pics in the us, download to my us server and use the there only or something. They will tell you to pay the tax in which your company is. If it's a EU owner for a US company then it probably will be tricky and you wouldn't need to pay the tax.

I don't quite grasp how you can had an EU owner of a US company

BRISK · 12-09-2004, 04:23 PM

Quote:

Originally posted by Apache_A
I don't quite grasp how you can had an EU owner of a US company

Anyone in the world can own a company based in the US

Apache_A · 12-09-2004, 04:24 PM

Quote:

Originally posted by BRISK
because the person buying it was in the EU

http://www.internetnews.com/ec-news/article.php/2194111

seems completly uninforcable to me

Apache_A · 12-09-2004, 04:24 PM

Quote:

Originally posted by BRISK
Anyone in the world can own a company based in the US

yes, but then is would just be a US company, a US entity, the fact that someone from the EU is a main stake holder should be irelivant.

sorry about my pervious comment, it's pretty obvious how someone in the EU can own a US company... I've had a few too many EU beers

sweandy · 12-09-2004, 04:25 PM

Quote:

Originally posted by BRISK
What happens if a webmaster in the EU buys a banner advertising on a US website?

Is that US website supposed to pay VAT?

webmaster=company and not end consumer. I think it's a difference.

When i purchase stuff for my company like hosting, scripts etc from non-eu country i don't pay sales tax and the seller don't care about it either and it's ok.

BRISK · 12-09-2004, 04:26 PM

Quote:

Originally posted by Apache_A
seems completly uninforcable to me

I agree

Apache_A · 12-09-2004, 04:27 PM

Quote:

Originally posted by sweandy
webmaster=company and not end consumer. I think it's a difference.

When i purchase stuff for my company like hosting, scripts etc from non-eu country i don't pay sales tax and the seller don't care about it either and it's ok.

well no, stricly it's illegal. so it's no OK. But no one really understand how to deal with this. so we really need some good test cases to set the presidence.

sweandy · 12-09-2004, 04:32 PM

Special scheme concerning VAT

From 1st of July, 2003, there is a special scheme concerning VAT on electronic services. The special scheme is applicable for companies outside the European Union that sell services to non-taxable persons (private persons) within the Union. Electronic services are those services that are supplied directly to the costumers computer, i.e. web-site hosting, downloaded music or software, information, pictures etc. The special scheme facilitate complience with fiscal obligation for these companies.

http://www.skatteverket.se/e-tjanste...ndel/main.html

BRISK · 12-09-2004, 04:51 PM

Wouldn't this mean that a company like Monster would have to charge VAT to EU customers?

www.monster.co.uk

www.monster.ie

Apache_A · 12-09-2004, 04:54 PM

Quote:

Originally posted by BRISK
Wouldn't this mean that a company like Monster would have to charge VAT to EU customers?

www.monster.co.uk

www.monster.ie

They should be anyway. They're a UK (and Ireland company) so should be paying and charing VAT (unless off course they aren't VAT registerd).

Also.. they might not be an UK company and just have UK domain names.... then this comes under other law that also haven't been tested yet

BRISK · 12-09-2004, 05:21 PM

Quote:

Originally posted by Apache_A
They should be anyway. They're a UK (and Ireland company) so should be paying and charing VAT (unless off course they aren't VAT registerd).

Also.. they might not be an UK company and just have UK domain names.... then this comes under other law that also haven't been tested yet

Monster is a US company, they just have offices in Europe

12-09-2004, 12:38 PM	#1
Brown Bear Confirmed User Join Date: May 2002 Posts: 4,982	EU Paysites and VAT Do EU based paysite businesses have to charge VAT to EU customers? __________________ Surrender all your independent thinking and Click Here for re-programming.

12-09-2004, 01:12 PM	#2
Brown Bear Confirmed User Join Date: May 2002 Posts: 4,982	__________________ Surrender all your independent thinking and Click Here for re-programming.

12-09-2004, 01:21 PM	#3
directfiesta Too lazy to set a custom title Industry Role: Join Date: Oct 2002 Location: Montreal, Quebec Posts: 29,701	You are based in the EU , you have tocharge the VAT to all EU customers, but not to non-EU customers. You are based outside the EU, using a EU processor, you charge no VAT nowhere. __________________ I know that Asspimple is stoopid ... As he says, it is a FACT ! But I can't figure out how he can breathe or type , at the same time ....

12-09-2004, 01:32 PM	#5
directfiesta Too lazy to set a custom title Industry Role: Join Date: Oct 2002 Location: Montreal, Quebec Posts: 29,701	I use a EU biller . They split the signups by origin : EU Non EU Canada ( my place ) They don't charge any taxes. When they make their invoice for their fees, they also do not charge any taxes ... They are BIG , but I hope they know what they are doing .... __________________ I know that Asspimple is stoopid ... As he says, it is a FACT ! But I can't figure out how he can breathe or type , at the same time ....

12-09-2004, 04:01 PM	#10
Apache_A Confirmed User Join Date: May 2004 Posts: 434	This is really a legal situation that needs a couple of test cases. If you buy physical goods outside the EU and get them imported then you have to pay VAT. If you buy something within the EU from a company registered within the EU then you should pay VAT (though there is the possibility that is isn't visible). BUT. If your with in the EU and you purchase goods or services that never enter the EU... what happens then? people can only really speculate as as far as I know there has been no legal cases to set the presidence __________________ ICQ:2116226

12-09-2004, 03:54 PM	#9
sweandy Confirmed User Join Date: Jan 2002 Location: Europe Posts: 422	I think it's been like this since 2003/01 or so. Companies in the US for example must pay sales tax on any digital items they sell to EU customers. To which tax entity in EU they choose (different rates, upto 25%). We with EU companies must adon the sales tax for the country we are present on each EU purchase. Either higher price or less profit.

12-09-2004, 04:14 PM	#14
Jizar II Confirmed User Industry Role: Join Date: May 2001 Location: LLL© Posts: 1,425	fuck VAT

12-09-2004, 04:14 PM	#15
BRISK Too lazy to set a custom title Join Date: Feb 2003 Posts: 12,240	What happens if a webmaster in the EU buys a banner advertising on a US website? Is that US website supposed to pay VAT? __________________ I post on GFY so that when people ask me what I do, I can tell them that I work with the mentally retarded.

12-09-2004, 04:32 PM	#26
sweandy Confirmed User Join Date: Jan 2002 Location: Europe Posts: 422	Special scheme concerning VAT From 1st of July, 2003, there is a special scheme concerning VAT on electronic services. The special scheme is applicable for companies outside the European Union that sell services to non-taxable persons (private persons) within the Union. Electronic services are those services that are supplied directly to the costumers computer, i.e. web-site hosting, downloaded music or software, information, pictures etc. The special scheme facilitate complience with fiscal obligation for these companies. http://www.skatteverket.se/e-tjanste...ndel/main.html

12-09-2004, 04:51 PM	#27
BRISK Too lazy to set a custom title Join Date: Feb 2003 Posts: 12,240	Wouldn't this mean that a company like Monster would have to charge VAT to EU customers? www.monster.co.uk www.monster.ie __________________ I post on GFY so that when people ask me what I do, I can tell them that I work with the mentally retarded.