United Kingdom VAT Filing Deadline is Approaching
The deadline for filing a VAT refund claim to the United Kingdom’s tax authorities for invoices dated from July 1, 2014 through June 30, 2015 is fast approaching. Please contact our office as soon as poosible if interested in proceeding with a UK VAT refund. The filing preparation has to begin 3 months before the December VAT filing deadline because an IRS certificate has to be ordered, which can sometimes take up to 3 months to receive.
New VAT liabilities for private sales when selling large volumes through eBay
Individuals sell items through eBay on a daily bases, however, many are unaware that they have already crossed the fine line from non-commercial to commercial sales activities. There was a recent court case in Germany where the Finance Court handled the case of an eBay seller generating amounts of about EUR 20,000 and up annually through acquisitions and sales from a coaster collection inherited from his father with an estimate of about 320,000 pieces. It was estimated that he generated 20% profit of total revenue and was therefore assessed VAT by the revenue office. The decision of the Finance Court demonstrates that auction platform sellers can be considered businesspersons even when selling private items. Therefore, when making multiple sales on platforms like eBay, it is extremely important to seek advice ahead of time to determine whether the sales are considered non-commercial or a commercial business activity, and the VAT liabilities that come into play when the fine line is passed.
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.
New Stricter Rules Related to Eligible VAT Invoices within the EU
New implemented rules within the EU means stricter requirements on eligible invoices accepted for VAT filings and refunds. Please contact our VAT experts for further information.
VAT Registration Required when Selling Goods Through Amazon in the EU
Several of our customers have indicated that Amazon within the EU will now
require all North American companies that are planning to sell goods through
Amazon in the EU to register for VAT before a contract is signed with any of the
Amazon websites within the EU. Please contact our VAT experts for further details.
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.