[Vtigercrm-developers] VAT changes and the marketplace

[Sreenivas Kanumuru]

Alan,

Thanks for bringing attention to this important matter. Fortunately, there
isn't much cause for concern.

Marketplace sales are made by Vtiger (USA entity) to customers. Vtiger buys
from Publisher, and then sells to customer. So, for the publisher, there is
only one customer which is Vtiger USA. Since, the publisher is selling to
Vtiger USA, my understanding is that even EU-based publishers don't have to
pay any VAT taxes,

For keeping records, Vtiger collects the business name, country, and Tax ID
when customers purchase via the marketplace. So far, all our purchases have
been by businesses. Sales to consumers are going to be quite rare, and the
total sales to consumers within a country will be below the 100,000 Euros
limit (per year) for the near future.

Regards,
Sreenivas




On Tue, Nov 25, 2014 at 5:20 PM, Alan Bell <alan.bell at libertus.co.uk> wrote:

> 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.
> _______________________________________________
> http://www.vtiger.com/
>
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