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  1. #1
    Join Date
    Mar 2013
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    Question Question about EU VAT

    Hi,
    I am wondering: if an non-EU company's servers are in the EU and it sells servers to EU customers, is the company obliged to add VAT to its sales to EU residents?

    If the answer is no, here comes the second question:
    I am an EU citizen and want to form such company. Where is the best country for me to register a company so that I minimize the applicable taxes?

  2. #2
    Well, Amazon for example has a UK website but it is a US based company. They have to add vat to everything. If I remember correctly the amount of VAT is applied to the country the product is going to but I could be wrong on that.
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  3. #3
    Join Date
    Mar 2013
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    Quote Originally Posted by Hosting&Designs View Post
    Well, Amazon for example has a UK website but it is a US based company. They have to add vat to everything. If I remember correctly the amount of VAT is applied to the country the product is going to but I could be wrong on that.
    Amazon is a multinational corporation with depots in the UK. So I would be surprise if the hadn't actually registered as a company in the UK.
    Amazon doesn't seem to be quite the tiny 'offshore' company that I have in mind.

  4. #4
    Contact your local tax department for information?
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  5. #5
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    Mar 2013
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    Quote Originally Posted by Hosting&Designs View Post
    Contact your local tax department for information?
    I guess they will not be happy to advise me on how to not pay VAT

  6. #6
    Yeah, maybe a tax service like we have in the US here like hrblock. Someone that knows everything about taxes. Wouldn't want to find out come tax time that you miscalculated…
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  7. #7
    Join Date
    Dec 2004
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    526
    The EU believes the laws of the country of the customer apply (and not that of the supplier) and you always need to collect VAT when selling to private individuals in the EU, regardless of where you, your company or your servers are located.

    Only difference that may make is how easy it is for them to enforce it.

  8. #8
    Quote Originally Posted by Maxnet View Post
    The EU believes the laws of the country of the customer apply (and not that of the supplier) and you always need to collect VAT when selling to private individuals in the EU, regardless of where you, your company or your servers are located.

    Only difference that may make is how easy it is for them to enforce it.
    what about when the suplier company is not european? should it still need to impose vat to eu cusomers?

  9. #9
    Join Date
    Dec 2004
    Posts
    526
    Quote Originally Posted by unyx View Post
    what about when the suplier company is not european? should it still need to impose vat to eu cusomers?
    Correct.

    As a non-EU company supplying electronic services to EU consumers you are supposed to register with the tax authorities of one of the EU member states for that purpose and start collecting.
    E.g. the Netherlands: http://www.belastingdienst.nl/wps/wc..._on_e_services

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