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EU company buying services from outside of EU; VAT?

Discussion in 'Business & Tax Advice' started by eveneven, Feb 9, 2015.

  1. eveneven

    eveneven Regular Member

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    Hi,

    I have a quick question. A EU company (llc) buying services from USA/Asia (i.e. from BST, hosting, domains etc.). Normally, as far as I've seen, these don't charge VAT.

    Will I have to pay VAT on top of this later? I.e. in EU the invoice says price ex VAT + VAT = price incl VAT, other invoices from outside EU will only say the price.

    Thanks
     
  2. TrafficWizard

    TrafficWizard Junior Member

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    There is no VATaxes Yes.

    With small communication to services you buy from and with MTIC you could get some big cash back ! If you know what are you doing.



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    Edited:

    About that VAT on later well there is thing In some countries if you buy stuff not from countries which include VAT you need to pay some fees IF ( price > x )
    now the X is calculated by country and in 99% it's fucked up for buyer you overpay really hard shipping tax it summs up really badly..

    I suggest contact hosting or whatever, say if bill is 10k in bill include that VAT let them fake bill thats nothing bad you know.. ! They get paid, there is no problem + you get your VAT calculated
     
    Last edited: Feb 9, 2015
  3. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    No VAT to be paid!
     
  4. eveneven

    eveneven Regular Member

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    Thanks to both of you. Someone said to me that buying hosting, SEO services etc is importing of services. So that's wrong?
     
  5. eXampL

    eXampL Power Member

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    It really depends on what country you live in. In some EU countries you have to pay up to %40 on taxes depending on what type of product or service you buy
     
  6. loamigad

    loamigad Regular Member

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    In my country you can take the origins countrys vat and substract that from my countries vat.
    In essence when buying services, importing, whatever we have our set tax.

    But we're one of the highest taxated countries in the eu and outside of eu aswell, so i dobut the rules will be THAT harsh for everyone.

    But to answer your question, call your taxman and ask.
     
  7. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    That's not the case.. they are electronic goods and you buy it from a company not registered for VAT! Anyway, as mentioned, should you be forced to pay VAT, then you can claim the amount at your local TAX office. Most often you have simple to enter your VAT number in the form where you put your billing information and the VAT vanish!