[Vtigercrm-developers] VAT changes and the marketplace

[Alan Bell]

there are a bunch of really stupid changes in the pipeline for VAT 
across the EU, you can read about them here

http://onemanbandaccounting.co.uk/eu-vat-changes-2015/
http://www.mercerhole.co.uk/p/e-business-01-january-2015-changes

and there are more details here:

https://www.gov.uk/register-and-use-the-vat-mini-one-stop-shop
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm

Now pretty much all vtiger marketplace purchases are not going to be 
from private individuals, but are going to be business purchases, I 
think there probably isn't a problem if the marketplace captures some 
kind of evidence that the customer is a business, so probably the name 
of the business, the country and the VAT number if they are in an EU 
country. That means that companies purchasing modules need to do a 
reverse charge accounting for the VAT and people selling through the 
marketplace are going to need that data as evidence they are not selling 
to EU consumers.

If someone does want to purchase a module as a consumer in the EU then 
things get dramatically more complicated, we have to capture two 
non-conflicting bits of evidence about what the country of supply is, 
find out the VAT rate in that country and charge the consumer this VAT. 
The VAT needs to then be paid to either the correct country, or pick a 
country and register for the MOSS and fill out one monster return (in 
ODF, which is nice) and pay over the VAT collected.

Alan.