EU Businesses, double taxation?

[toolz]

Hello,

We are Romanian and European registered business.

We are registered in intra-community operators list from Romania.

That means we are doing banking operations (any kind of operation/transaction) with another company from EU, in our case WHMCS.

EU financial/fiscal laws gives us the right to ask for legal documents from the company we buy from, WHMCS in our case, which proves that WHMCS company pays the taxes where they are registered (UK), to avoid double taxation.

 

Not to mention that we do not have to ask for the docs, they have to be provided before we attept to pay.

 

The certificate we have to get is called: Tax residence certificate

Thats how it is called in Romania and it is recognised inside EU.

 

If we do not get the docs we have to pay the tax of 16% of the amount we pay to WHMCS, thats the percent in Romania. And I bet WHMCS pays tax per profit/VAT, and this is double taxation which should be avoided.

 

For example

If we want to sell to a company outside our country but inside EU we have to provide the company which will pay us this certificate which is translated in RO and EN and it gets registered to the EU intra-community operators.

So I bet WHMCS accountant knows about this and we can get the docs as asked in the support ticket altough Matt told us that they dont have any certificate to provide us.

 

Anyone else has or had this problem?

[HostOrca]

They do not need to provide you with any "certificate". All that is required is the vat registered number, which for whmcs is Vat No. GB 927 7746 76

 

It might be different in your country, but in the UK the vat registration number is all that is required. Your tax man will be able to verify that vat number if they check your accounts/when you submit them.

Edited August 22, 2010 by HostOrca

[toolz]

Thats because your business is located in the same country as theirs.

Its different.

[WHMCS John]

Nope, when doing business with any EU country from the UK all that's required is the VAT number.

[studiografiti]

Have been doing business with UK, German, Spanish, Italian and Swedish companies and from my expierience only VAT number is needed as John and HostOrca pointed out.

[ServWise.com]

What your country requires you to provide and what WHMCS's country required them to provide may be completely different. WHMCS is not governed by your countries laws and so you have no right to insist on a document which may simply not exist in the UK and certainly is not required to be provided AFAIAA.

 

EU legislation says for the reverse charge mechanism to apply between EU countries that the VAT reged buyer must provide the VAT reged seller with a validated VAT / IVA / EU TAX number and the seller is then obliged to apply 0% tax to the sale. Sales in the same country always apply VAT and sales outside the EU never apply VAT.

 

IANAA / IANAL apply

[othellotech]

Nope, when doing business with any EU country from the UK all that's required is the VAT number.

 

There are a number of EU countries which require VAT registered business to obtain a copy of all suppliers VAT certificate and keep it on file - the simplest solution woudl be for WHMCS to make a scan of it available to d/load in the client area for those affected by that taxation rule.

[niels]

I recall a similar rules in the Netherlands, but that was 5 years ago.

 

Currently the Dutch tax agency tells me that EU companies should invoice each other *without* VAT as of 2010/01/01. (Some exceptions like food, real-estate, transportation etc., stuff you typically don't take back home.)

[WHMCS John]

There are a number of EU countries which require VAT registered business to obtain a copy of all suppliers VAT certificate and keep it on file - the simplest solution woudl be for WHMCS to make a scan of it available to d/load in the client area for those affected by that taxation rule.

You could use the client files feature for this.

[Milliment]

hi

We are also a EU based business and deal internationaly.

There is a modul in WHMCS which will check that the VAT number provided by a registered EU company is Valid.

 

This will then remove tax automaticaly from the customers Invoice.

 

As a registered EU business you do not pay tax to Business's Outside your Country and Visa versa. As for Business's in your country there VAT number MUST apear on the invoice so they may clame back the tax paid.

 

This is General Legislation within Europe.

 

BUT i will add an additional to this, if your country is like Italy and is a bitch and a pain in the ass for Invoice Rules the WHMCS Invoice will not be enough and you must send an additional Invoice with the specific Information required by the Countrys Laws.

[toolz]

Thanks all for your replies.

 

The document we have to send from Romania when we get a buyer outside our country but inside EU is called 'tax residence certificate' and is translated in both RO and EN.

The certificate is a proof for the buyer that we pay taxes in our country and in EU.

With that certificate the buyer has the proof that we pay taxes and he won't be forced to pay extra taxes in his country for the payment sent to us.

And, as far as I understood from my accountant the certificate can be optained from each country in EU, it is recognised in EU.

 

WHMCS didn't sent me the doc and I will have to pay 16% of the amount I pay to WHMCS to the state. (16% is set in our country by the gov, flat, or some sort, because I cannot prove that the merchant I paid for services pays taxes in EU, in UK like in our case).

 

Not sure what to do exactly and not sure if I explained the situation so you can understand it, sorry if I didn't do it.

[othellotech]

You could use the client files feature for this.

 

We know *how* to do it

 

I think the OP's issue is that *WHMCS Ltd* dont make your VAT certificate available for them to comply with their countries VAT processing laws on overseas purchases