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Do you or don't you charge your BTW/VAT/TAX for foreign customers
Old 16th May 2006
  #1
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inlinenl's Avatar
 

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Do you or don't you charge your BTW/VAT/TAX for foreign customers

Hello,

I'm a solo compagny so I have the fun and burden to handle all things accordingly running a proper/decent bussiness ......

My accountant and Tax-coverment say different things .... my accountant say's for mastering you don't have to charge VAT/BTW if the foreign customer is a bussines or natural person and has a VAT/BTW/Tax number ...

The Tax/VAT/BTW goverment says because it's a service ( there are no physical goods involved ) you will have to charge tax/vat/btw ... the foreign customer can claim this back .......in his/her own country

It would be much more hassle-free if I dont charge .... what are you guys doing .... i'm in the netherlands/holland ...

Greetings Wim,


www.inlinemastering.com
Old 16th May 2006
  #2
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gainreduction's Avatar
 

I've been trying to figure out the same thing and I get different answers from different people. Even two people at the tax-institution had different opinions.

I don't do mastering so this is for my production and mixing work aswell as for songwriting royalties and producer's royalties.

The VAT % for the above mentioned is different within my country (Sweden), 25% for productions and mixes, 6% for royalties and I can imagine that it's wildly different from country to country.

However the general opinion here seems to be that if my company has a valid VAT-number registered in the EU and the customer has one aswell, then VAT is 0%, within the European Union. For other parts of the world I take it case-by-case.

It worries me though, since I don't want all of a sudden to be forced to pay a lot of VAT that I never charged from my customers in the first place...
Old 16th May 2006
  #3
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inlinenl's Avatar
 

Verified Member
Quote:
Originally Posted by gainreduction
I've been trying to figure out the same thing and I get different answers from different people. Even two people at the tax-institution had different opinions.

I don't do mastering so this is for my production and mixing work aswell as for songwriting royalties and producer's royalties.

The VAT % for the above mentioned is different within my country (Sweden), 25% for productions and mixes, 6% for royalties and I can imagine that it's wildly different from country to country.

However the general opinion here seems to be that if my company has a valid VAT-number registered in the EU and the customer has one aswell, then VAT is 0%, within the European Union. For other parts of the world I take it case-by-case.

It worries me though, since I don't want all of a sudden to be forced to pay a lot of VAT that I never charged from my customers in the first place...
gainreduction ... same for me ..... i just don't feel comfortable .... strange we can not get a verdict form the tax-governement ... should try to get it in writing ... but I've got something better to do/its not my cup of tea to hassle about those kind of things ... and my accountant charges way more per hour then me ..... so for now i'll just calculate te tax to my customers ... I'm sad to do so ...... someday ....

greetings wim/inlinemastering
Old 16th May 2006
  #4
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gainreduction's Avatar
 

Quote:
Originally Posted by inlinenl
... and my accountant charges way more per hour then me .....
Yep, same here. heh
Old 16th May 2006
  #5
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Darius van H's Avatar
 

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Hi Wim,

You are delivering a physical object.....the master.........even if you're sending a DDP master via FTP, just think of it as a physical object - the tax office has no clue what mastering is, so if it suits you to tell them you're delivering a physical object, then do so!

So you need to charge people in the EU BTW.....if they have a valid VAT number then they don't need to pay the BTW....but make sure you check the number to see if it's valid.........around 40% of my foriegn customer give me the wrong or incorrect number by mistake. Here's the number you need to call to check buitenlands VAT numbers: 0546 472 000 - if you don't have the correct VAT number when you do your tax return, you'll have a problem - you'll need to pay the BTW yourself!

People outside the EU don't need to pay BTW (Switzerland, U.S. etc)
Old 16th May 2006
  #6
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inlinenl's Avatar
 

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Quote:
Originally Posted by Darius van H
Hi Wim,
Here's the number you need to call to check buitenlands VAT numbers: 0546 472 000 - if you don't have the correct VAT number when you do your tax return, you'll have a problem - you'll need to pay the BTW yourself!

People outside the EU don't need to pay BTW (Switzerland, U.S. etc)
Darius, thanks again ...... great info .... hope to drop in sometime in the near future with a nice project !!!!

greetings wim.
Old 16th May 2006
  #7
Gear Nut
 

To check if EU-vat nrs are legit, proceed to this site:

http://ec.europa.eu/taxation_customs...t/vieshome.htm


You sometimes get the data associated with that VAT reg-no: company name, address etc.
Try with your own number to see.

Succes!
Tabee,
J.
Old 17th May 2006
  #8
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inlinenl's Avatar
 

Verified Member
Quote:
Originally Posted by da burf
To check if EU-vat nrs are legit, proceed to this site:

http://ec.europa.eu/taxation_customs...t/vieshome.htm


You sometimes get the data associated with that VAT reg-no: company name, address etc.
Try with your own number to see.

Succes!
Tabee,
J.
Jurgen .. thanks for the tip .... nice to see/hear you hanging around here ... slutty as always ... :-)
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