mastering studio international VAT problem

[Whitecat]

Originally Posted by alcopop

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.

[inlinenl]

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

[Whitecat]

PS - you can verify VAT numbers here:

EUROPA site - Validation

[alcopop]

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]

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]

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]

Great resource!

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

Thor

Originally Posted by terminal3

PS - you can verify VAT numbers here:

EUROPA site - Validation

[inlinenl]

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]

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.

[finetuner]

Originally Posted by alcopop

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.

[finetuner]

Originally Posted by terminal3

PS - you can verify VAT numbers here:

EUROPA site - Validation

Thanks for the link Terminal3.

btw, have you seen my stapler ?