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/biz/ - Business & Finance

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1420648 No.1420648 [Reply] [Original]

I'm an australian company who's sending posters via the US to Eurozone countries. Do I have to charge them VAT? Does it go to the UK government?

>> No.1420668
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1420668

The fuck if I know, ask a lawyer, not 4chan, you retard.

>> No.1420669
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1420669

>>1420648
>aus company asking 4chan how to run said company

>> No.1420698

>>1420648
Is your business B2B or B2C?

If it's B2B, you don't have to charge them with VAT (unless the company you're selling to is actually a self-employed freelancer)

If you're selling to customers in the Eurozone, you will obviously have to charge them with VAT, yes.
You will first have to register your business in a EU or better yet Eurozone country and depending on where you did register, you will have to pay the respective VAT rate of the EU member country.
(Protip: The lowest rate is in Luxembourg (17%), the highest in Hungary (27%))

In some EU states you won't have to bother with VAT if your yearly revenue generated in the EU stays under a certain sum though.

>> No.1420709

>>1420698
Thanks for the response.

Its B2C.

So we send the poser out for $100 so what then? Does the customer receive a bill in the mail for 20%VAT? Or do we have to build it into our price?

>> No.1420731

>>1420709
You normally build it into your price.

So it would be 100 € + 20 € VAT in this case.

But again, depending in which EU state you register your business, you might not have to bother with VAT, if your annual revenue generated in the EU stays under a threshold (usually 100,000 €, but in some countries like France it's significantly lower, basically everywhere where economic Leftists are in power)

This rule was introduced for exactly this reason, so that small businesses (like yours) from overseas won't stop selling stuff into the EU because of VAT

>> No.1420740

>>1420731
Ok so we bill the customer 120EU then we have to send the government of whatever EU country we registered in a cheque for EU20?

>> No.1420748

>>1420740
Yes.

Depending on the country, you can pay it monthly or quarterly (maybe even yearly in some places, not sure about that tho)

>> No.1420762

>>1420748
Ok thanks

>> No.1420858
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1420858

I wonder if Op will verify the advice or just use it

>> No.1420859

>>1420858
why verify?

>> No.1420906

>>1420858
Well, he definitely should.

But it's not like I'm talking out of my ass, I studied that shit and had to deal with it pretty much on a daily basis during my internship at a medium-sized German company that had clients and customers all over the world....