Why do i have to pay VAT?

[neodg]

Hello!

 

Yesterday i would buy WHMCS. So im filling out the order-form with our VAT number (we are from Austria), but the order form tells me that i have to pay our (20%) VAT?

 

Have anybody else this problem?

[steven99]

Because of being in the EU. Check http://www.brighton-accountants.com/blog/vat-uk-austria/ or specifically what it says:

For VAT purposes it is physical movement of goods that is relevant, rather than the invoicing name or address. An invoice to an Austrian customer when the goods are not leaving the UK will not normally be classed as an export, and UK VAT would be chargeable. However, goods being sent to Austria on behalf of a UK customer without an Austrian VAT number are still subject to UK VAT at the usual rate (even if the customer is registered for VAT in the UK).

So, is it the Austrain VAT or the UK VAT that is being charged is the question?

[neodg]

OK, this is a really new info for me! In this case i cannot get the VAT back. I think...

 

I should pay the austrian VAT in the order.

Edited September 14, 2013 by neodg

[brian!]

So, is it the Austrain VAT or the UK VAT that is being charged is the question?

i'm not a tax expert, but i'm pretty sure it would need to set at the rate of VAT in the customer's country - in this case, this doesn't matter as it's 20% in both countries.

 

I too was surprised when I purchased whmcs to see the VAT added on, but I was getting a 15% discount from whmcs, which absorbed the majority of the VAT.

[Alistair]

As a VAT registered entity in England and Wales, WHMCS Ltd are required to charge VAT at 20% to all customers based in the UK and European Union. For any other country, VAT does not apply (this is probably why they add it on towards the end of the checkout process, as a lot of customers won't have to pay VAT).

 

If you are based in an EU country other than the UK, and you are VAT registered, you can get WHMCS to zero rate the invoice (i.e. change VAT from 20% to 0%).

 

There are some exceptions to the above statements, but for the UK and Austria, that's how it works.