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mastering studio international VAT problem
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alcopop
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4th February 2009
Old 4th February 2009
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mastering studio international VAT problem

Hi , I know there is a few threads on this already but to be honest I'm still a bit confused .

Here is my dilemma :
I'm based in Germany and I've recently teamed up with an Irish studio to work on a project mastering an album .
When it came time to invoice, (now) , I'm not sure weather I should be charging VAT or not to this international client, and if not, do I need to write anything in particular on the invoice ?

Any help clearing this up would be much appreciated
Whitecat
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4th February 2009
Old 4th February 2009
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Quote:
Originally Posted by alcopop View Post
Hi , I know there is a few threads on this already but to be honest I'm still a bit confused .

Here is my dilemma :
I'm based in Germany and I've recently teamed up with an Irish studio to work on a project mastering an album .
When it came time to invoice, (now) , I'm not sure weather I should be charging VAT or not to this international client, and if not, do I need to write anything in particular on the invoice ?

Any help clearing this up would be much appreciated
I'm not an expert, but, it's my understanding that you must charge VAT to other EU firms. If they are VAT-registered then they don't have to pay it (they would supply you with a VAT number). Otherwise they pay VAT at your country's rate unless you have business arrangements within the other country.

If the client is outside of the EU then they probably don't have to pay VAT - you would "zero rate" it.

Others with more frequent and direct experience will chime in, I'm sure.
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4th February 2009
Old 4th February 2009
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Alcopop,

if Ireland is in the EU you have to charge VAT .. if the client has a VALID vat number then you can skip the VAT.
make sure you check the VAT number and the NAME to that VAT number .. otherwise your accountant/tax-service will bugg you with the correct name/number.

if Ireland is outside the EU ... then no VAT charge ...

en Yes .. Ireland is in the EU

I had a guy from the faroe islands , that was funny ??????? vat or not to vat ...

the current EU countries are :
Austria
Belgium
Bulgaria
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
United Kingdom
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Whitecat
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4th February 2009
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alcopop
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4th February 2009
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Hi guys and thanks for the replies .
So if the EU client has a valid VAT number I can just zero the VAT on the invoice .
Do I have to show there VAT number on the invoice also for my own records?

Thanks again ,
Gary.
inlinenl
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4th February 2009
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gary, yes ... make sure the name/vat-number are valid ... I just give a call to the tax service in holland and they can help out if the site validation does not work.
alcopop
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4th February 2009
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Thanks Inline ,
I just don't want to be audited some day and told I owe the government in Germany for years of improper VAT handling . stike
Thor
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4th February 2009
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Great resource!

We're lucky (?) in that being outside the EU, all foreign invoices are VAT free.

Thor


Quote:
Originally Posted by terminal3 View Post
PS - you can verify VAT numbers here:

EUROPA site - Validation
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inlinenl
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4th February 2009
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Okay Gary,

I'm very strickt in this case ... clients have to supply VALID names/numbers .. if there's any question, something not clear, I'll charge the VAT, the client can always re-charge the VAT/Steuer in their home country.
it's not worth the trouble/hassle finding out later numbers & names do not match.... and trying to clear up things.
if clients are returning then all is okay.

my accountant/administrator does not like all the trouble it brings from in-correct numbers and names ..
alcopop
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4th February 2009
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I agree , unless it's done correct it can breed a lot of hassle and a potential decreasing of company profits .
I guess it's definitely something I will have to include in my client profile (once checked out) for future business.
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4th February 2009
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Quote:
Originally Posted by alcopop View Post
So if the EU client has a valid VAT number I can just zero the VAT on the invoice .
Do I have to show there VAT number on the invoice also for my own records?
Yes, you have to show on the invoice (the one you're keeping should be an exact copy) :
1. the fact that you are applying the 0% rate and
2. your customer's VAT number.
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4th February 2009
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Quote:
Originally Posted by terminal3 View Post
PS - you can verify VAT numbers here:

EUROPA site - Validation
Thanks for the link Terminal3.

btw, have you seen my stapler ?
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