Visit Euro VAT Refund at Booth Nr 2166 at this year’s IRCE: The Retail Industry’s Leading E-Commerce Conference and Tradeshow at McCormick Place West in Chicago, IL, June 7-10, 2016
E-commerce is growing faster than ever, and many North American companies are unaware about their liabilities when selling goods and services online internationally. IRCE has an exhibit hall filled with experts in the e-commerce field and it is the place to be for networking with other like-minded peers in the industry. To learn more about your liabilities, and to find out what VAT rules will apply when selling goods and services online to the different EU countries, please visit Euro VAT Refund at booth Nr. 2166.
For further details and registration, please visit: irce.com
The VAT filing deadline in most of the European countries is approaching
If VAT has been paid on expenses within the European Union (EU) after 1 January 2015, the invoices should be gathered and sent to our office as soon as possible in order to meet the June 2016 VAT filing deadline. The filing preparation has to start as soon as possible due to the IRS certificate that has to be ordered which can take up to 3 months to receive. Please contact our office at your earliest convenience if interested in proceeding with a VAT refund.
New stricter VAT rules for North American companies selling online to customers in Europe
The United Kingdom (UK) has realized that many North American companies are not following the local VAT regulations when selling goods in the UK via online marketplaces. In attempt to make non UK companies VAT compliant, the UK has decided to take action by giving HM Revenue & Customs (“HMRC”) the power to make an overseas business appoint a UK VAT representative. Together they will be responsible and liable for any unpaid UK VAT. In addition, the newly introduced UK VAT laws will also allow HMRC to hold an online marketplace liable for any unpaid VAT on behalf of an overseas company that sells goods in the UK via the online marketplace’s website.
The reason for these new VAT laws within the UK is that HMRC has noticed that overseas businesses that sell goods that are located in a UK warehouse at the time of sale to UK costumers via online marketplaces such as Amazon, Ebay and others are not registered for VAT, and are also not paying VAT on the full retail price. This makes it challenging for non UK companies that are legally registered for VAT since goods that shipped and stored in a UK fulfilment warehouses by non VAT registered companies before being sold to UK consumers are offered a lower price.
These new measures will begin in 2017, and HMRC will be on the lookout for any North American company that is not VAT compliant. These companies will be tracked down one by one to appoint them with a UK tax representative, or have them register for a local VAT number. In order to avoid back taxes and penalties, and to find out if your company is required to register and charge VAT within the EU, please contact our VAT experts.
New VAT rules when arranging conferences in Switzerland
In previous years Switzerland did not require North American companies to register for VAT when arranging events within Switzerland where there is an attendee fee charged. The Swiss government has now decided that VAT registration will be required if the foreign company will have a revenue of CHF 100,000 or more within one year. If the amount is lower than CHF 100,000 the foreign company can register voluntary for VAT purposes in Switzerland. Please contact our VAT experts for further details.
Alert! The German Tax Authorities are actively contacting North American companies
Several U.S. companies doing business within the EU, including Germany have indicated that they have been contacted by the German tax authorities. They are apparently attempting to catch any foreign company selling digital services (on-line games, music, cloud services, and other) to private people within the EU. These companies are often unaware that they are required to register for VAT and charge VAT to the private customers. The call from the German tax authorities might come as an unpleasant surprise since they demand that the company declares and pays in the VAT due from sales to Germany. If this is not done the North American company can expect back taxes and penalties. To find out if your company is required to register and charge VAT within the EU, please contact our VAT experts.
Change in Spanish VAT Refund Regulations as of January 2015
The Spanish government has decided to refund VAT on some of their services to non-EU entities as of January of this year. This is a major breakthrough since Spain previously did not refund VAT 13 Directive to North American companies. Some of the expenses on which VAT will be refundable are services related to the attendance of fairs, congresses and expositions of commercial or professional events. Related services include event access, accommodation, meals and transportation. Please contact our VAT experts for further information.