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I'm interested in how this would work. Where would the VAT go in the case of a German person who primarily lives and works in the UK? Is it based on their IP ad
by blowski 12y ago
I'm interested in how this would work. Where would the VAT go in the case of a German person who primarily lives and works in the UK? Is it based on their IP address at the time of signing up? Or where their banking address is registered?
EDIT - Just found this, which suggests it's up to the company themselves to decide in which country the service is being 'consumed', and they need to store evidence which shows how they make that decision.
http://www.hmrc.gov.uk/news/one-stop-shop.pdf http://www.hmrc.gov.uk/news/one-stop-shop.pdf
- AverageBanana 12y agoCorrect, the burden of proof is on the company that is supplying the electronic service. But it is not that they 'decide'. They need to collect required types of evidence (that do not conflict with each other) in order to prove where their end customer is. Accepted evidence includes the customer's IP address; their fixed landline; their mobile phone SIM card country code; and credit card billing address. VAT is based on where the service is 'consumed'. That German person who resides in the UK will have to pay UK VAT on any electronic service that they consume in the UK. There are a whole host of other rules if that person goes on holiday in the EU. EDIT: If some of the evidence above 'conflicts' with the other, e.g. UK fixed landline but a German credit card billing address, then more evidence will be required until the merchant is satisfied as to the customer's precise location.