Re: FN-FORUM: VAT on EU electronic services (WAS: 123-Reg Domain Names)

date posted 21st November 2007 09:11

>Thanks for the correction Dom. You're saying that in a case such as a UK
>company purchasing domain names from Italy, the Italian supplier would
>charge no VAT, but the UK buyer must pay 17.5% to HMR&C?
>
>If this is the case, how is the collection enforced?! I wonder how

It is the case, and the rules are quite clear, the supplier does not
charge VAT where the purchaser provides a valid EU VAT number and is
located in an EU counry outside of the supply country. I know because I
had to code this into a system that I developed, and the EU VAT number
should be checked (online) and the location of the purchaser should be
verirified (geoIP is ok).

--Richard
http://www.zaretto.com