» VAT questions
VAT questions
Hi,
I have in the past emailed about VAT and the reasons why Plimus, an American company charges VAT to European customers. Unfortunately I need more in-depth information as I am dealing with my own VAT accountant and he wishes to understand fully your process.
I would appreciate some clarification on the following points.
- Why does an American company charge VAT to European customers?
- How do you pay the VAT to say the UK government? Are you VAT registered in the UK?
- When do you pay the VAT to all of the European countries and how does this work?
- Are you sure that Plimus vendors do not need to pay VAT because Plimus pays it on their behalf?
Kind regards,
Jack
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VAT Clarification
VAT on sales of digital products in the European Community is based on the residency of the party ordering the products.
So if a client orders from Germany they will be charged VAT.
VAT is added on the sale, shown on the Invoice and accounted for directly by Plimus to the relevant tax collection authority.
According to the invoice and our terms of business with our Sellers, Plimus is the reseller, and we are liabile for charging and accounting for VAT not the product vendor.
Derek, Plimus
Hi, So ANY American company
Hi,
So ANY American company has to charge VAT to a customer if they are located in Europe? I've never seen another American company charge VAT to me before when I've purchased a product (I'm in the UK).
What date of the year do you pay the VAT to the UK government? How does this work?
Is it possible to have a contact email of someone more high up in your company who specifically deals with VAT returns or has a more in-depth understanding? I appreciate your answer but I assume most Plimus staff do not know the full technicalities such as return dates, VAT registration numbers, etc. We are talking about $$$,$$$ in sales and my accountant needs to know more specific information. Is this possible?
Thanks
VAT
Hi there,
I'll pass this up to our Accounts head.
Derek
VAT More Information.
Hi there,
This additional information from the Accounts section.
Should you need further assistance or clarification please open a support ticket through your control panel link.
"Starting with July 1st 2003, the Council Directive 2002/38/EC (PDF), amends the EU rules for charging VAT concerning e-commerce. To eliminate any inequity between EU and non-EU countries, the new directive ensures that all suppliers of 'electronic services' or 'electronically supplied services' are subject to the same VAT rules, when they are providing services to EU customers. Nevertheless, sales to corporate customers are not affected. Corporate customers are usually identified through their valid VAT ID number and are not charged VAT. In any case, the existence of a VAT id is not an absolute prerequisite - paying customers can later receive a VAT refund from their tax authorities.
Major changes introduced by the directive for non-EU entities:
1. The VAT rate charged is between 15% and 25% and is determined by the customer's country of residence in EU. The supplier has the obligation to check if the corporate customer has a VAT registration number and decide whether or not a contract should be charged with VAT. Customers with valid VAT ID should not be charged by the supplier. If a VAT registration number cannot be presented , the supplier can charge VAT, and the customer can later receive a VAT refund from his tax authorities. To ease suppliers' efforts in determining the status of a customer, the Commission set off a project to modernize and enhance the VAT information exchange system (VIES) network, to allow for on-line real time confirmation of VAT status.
2. Private customers (consumers) in EU countries must be charged VAT for electronically supplied services and products, both by EU and non-EU providers. The trader will collect VAT from their EU private customer, at rates according to the regulations in the country where the customer is located.
3. EU suppliers of electronically delivered products and electronic services are no longer obliged to charge VAT, for customers located outside EU. Vat Registration Non-EU companies that trade with European consumers (private customers) need to register and account for VAT. A simplified scheme has been designed to offer easier and more efficient means for these suppliers to meet their fiscal obligations."
Plimus is registered with the UK through HM Revenue and Customs for payment of VAT.
Hi, Thanks a lot for this
Hi,
Thanks a lot for this info.
Hi, Why is it no longer
Hi,
Why is it no longer possible to enter my VAT number (as Europeean company). I used to be able to enter my VAT number, but the VAT box disapeared. Without VAT number, I have to pay uneccessary VAT and can't get a complete invoice.
Regards,
Brecht
What is shown in the Country
What is shown in the Country box in the Customer Information screen? If an EU country is selected then the VAT section is shown, if non-EU then the VAT section is hidden.
The selected "Belgium" in the
The selected "Belgium" in the country box, but I'm not able to enter my VAT ID. I'd tried some other EU countries as a test, and no VAT ID field is apearing.
VAT Input Fields - BuyNow Pages
Please see screenshot below which shows the functionality.
The VAT box is working and shows up when a relevant EU country is selected.
Perhaps you were testing using the TestBuyNow button - which links to a predefined test url with test credit card coordinates. Instead please test this functionality on a real live buynow page (use the full link shown on the relevant Contract settings page.
If you are still having problems then please raise this issue with Vendor Support through your control panel.
Thanks,
Derek, Plimus