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We are currently looking into this question as well, it does not seem that complex as we first expected. But would be great to compare notes, our current unders
by adamwi 10y ago
We are currently looking into this question as well, it does not seem that complex as we first expected. But would be great to compare notes, our current understanding below.
My current understanding for selling services if company located within EU (we are in Sweden)
- If customer is outside EU: No VAT charged ("reverse charge")
- If customer is inside EU and has VATID: Verify VATID, no VAT charged ("reverse charge")
- If customer is inside EU and do NOT have VATID: Apply VAT % for country where customer is located, charge VAT, pay VAT through MOSS system in country where your company is located
- tonyedgecombe 10y agoAren't you supposed to get a second confirmation of location, such as the customers IP address?
- atmosx 10y agoNot from my experience. Many stores allow to set a different country as shipping address too (e.g. Amazon UK).
- adamwi 10y agoGood point, I had missed this previously. It seems that there exist a number of categories of services and each has its own rules for determining where the customer is located. If the service do not fall within on of predefined the categories the below rule apply, meaning that billing address is not enough and secondary verification is needed. It seems that most Saas service fall under the below rule. [0] Where the digital services are supplied other than in the circumstances listed above, the business making the supply must obtain and keep 2 pieces of non-contradictory information to support and evidence the member state where the customer is normally located. [0] https://www.gov.uk/government/publications/vat-supplying-digital-services-to-private-consumers/vat-businesses-supplying-digital-services-to-private-consumers https://www.gov.uk/government/publications/vat-supplying-dig...