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VAT and international customers

  • 12-08-2013 7:22pm
    #1
    Kudos
    Registered Users, Registered Users 2 Posts: 94 ✭✭


    I have a business that sells a subscription service to international customers and I'm wondering whether I can eat the VAT charges and present the same price to US and EU customers?

    I really don't want to present one price and then have customers from Europe see an additional 23% on the checkout.


Comments

  • #2
    DubTony
    Registered Users, Registered Users 2 Posts: 3,267 ✭✭✭DubTony


    If you're in Europe and selling to non vat registered customers in Europe, you should sell at the VAT inclusive price. This is mandatory, much the same as your local shop quotes VAT inclusive prices. No surprises for the customer.
    If your EU customer from outside Ireland can provide you with a VAT no. you don't charge them VAT, but AFAIK it still needs to be recorded on your VAT return in some way.

    AFAIK you don't charge VAT to customers outside the EU.

    FYI, companies like (I think it's) Clickbank who handle lots of subscription services have no qualms about surprising people with the appropriate VAT rate for their country.

    Check with your accountant.


  • #3
    Kudos
    Registered Users, Registered Users 2 Posts: 94 ✭✭Kudos


    That doesn't really answer my question.


  • #4
    DubTony
    Registered Users, Registered Users 2 Posts: 3,267 ✭✭✭DubTony


    You're question asked if you could EAT the vat charges. I did my best in fairness.

    The simple answer is No. Following the letter of the law, you can't present the same price to EU and US customers, unless you want to charge the Yanks more than the Europeans, which would mean more profit for you. :D *BONUS* :D

    If you don't want to charge the US customers more, you should present 2 prices. One for Europeans and one for everyone else, ensuring that you state the EU price includes VAT.

    The other option is to charge the same for both, but your EU price would include VAT that you would be required to pay. So in that sense you would be "eating the VAT".

    Hope that helps.


  • #5
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    If you are selling to the USA, you should be selling in Dollars, to the Uk in Stg and the rest of Europe in Euro. The yanks do not understand other currencies anyway, so price differential is never an issue. You can sell to EU VAT registered customers without VAT if you get a valid VAT number from them. If they are not VAT registered, you must charge them VAT . All of the above assumes that you are VAT registered here! If not forget VAT!


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