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<div class="moz-cite-prefix">On 25/11/14 13:25, Sreenivas Kanumuru
wrote:<br>
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cite="mid:CA+zQwC+J5NgtruRzPEZrcdJF-mHW09H6gsJFtvazsJfVa49LTg@mail.gmail.com"
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<div>Alan,</div>
<div><br>
</div>
<div>Thanks for bringing attention to this important matter.
Fortunately, there isn't much cause for concern.</div>
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yes, certainly not as bad as it could be because it isn't consumer
sales<br>
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cite="mid:CA+zQwC+J5NgtruRzPEZrcdJF-mHW09H6gsJFtvazsJfVa49LTg@mail.gmail.com"
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<div><br>
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<div>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, <br>
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the problem is that they are now looking at where the final user is,
it is called "use and enjoyment"! So, they can look at the whole
chain and determine that the digital goods ended up being consumed
in the EU, by a consumer (or non-registered business) so we have to
prove that didn't happen.<br>
<a class="moz-txt-link-freetext" href="http://www.hmrc.gov.uk/manuals/vatpossmanual/vatposs15100.htm">http://www.hmrc.gov.uk/manuals/vatpossmanual/vatposs15100.htm</a><br>
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<div><br>
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<div>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.</div>
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this is great, I think EU publishers might need this info (in
particular VAT numbers) at some stage, but as long as it is being
captured and we are not selling to anyone without a VAT number then
I think it is OK.<br>
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cite="mid:CA+zQwC+J5NgtruRzPEZrcdJF-mHW09H6gsJFtvazsJfVa49LTg@mail.gmail.com"
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<div><br>
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<div>Regards,</div>
<div>Sreenivas</div>
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<div class="gmail_extra">
<br>
<div class="gmail_quote">On Tue, Nov 25, 2014 at 5:20 PM, Alan
Bell <span dir="ltr"><<a moz-do-not-send="true"
href="mailto:alan.bell@libertus.co.uk" target="_blank">alan.bell@libertus.co.uk</a>></span>
wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0
.8ex;border-left:1px #ccc solid;padding-left:1ex">there
are a bunch of really stupid changes in the pipeline for
VAT across the EU, you can read about them here<br>
<br>
<a moz-do-not-send="true"
href="http://onemanbandaccounting.co.uk/eu-vat-changes-2015/"
target="_blank">http://onemanbandaccounting.co.uk/eu-vat-changes-2015/</a><br>
<a moz-do-not-send="true"
href="http://www.mercerhole.co.uk/p/e-business-01-january-2015-changes"
target="_blank">http://www.mercerhole.co.uk/p/e-business-01-january-2015-changes</a><br>
<br>
and there are more details here:<br>
<br>
<a moz-do-not-send="true"
href="https://www.gov.uk/register-and-use-the-vat-mini-one-stop-shop"
target="_blank">https://www.gov.uk/register-and-use-the-vat-mini-one-stop-shop</a><br>
<a moz-do-not-send="true"
href="http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm"
target="_blank">http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm</a><br>
<br>
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.<br>
<br>
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.<br>
<br>
Alan.<br>
_______________________________________________<br>
<a moz-do-not-send="true" href="http://www.vtiger.com/"
target="_blank">http://www.vtiger.com/</a><br>
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