Quote:
Originally Posted by celandina
If a company pays or issues an invoice even into a personal account you are obligated to charge and file VAT. If One party is OUT of EU then not. Person to person does NOT either.
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No, the bank has nothing to do with charging VAT, it is your duty to register for it and pay that at the local tax office
You can be a VAT payer but don't have to be unless your yearly turn-over is above 50,000 € (locally it is exactly 49,790€). If you are not a VAT payer:
1. as an EU businessman you are obliged to pay VAT if and you order goods from another EU country into the country where your business is located IF the value of the goods is above 14,000 € (may differ between the countries). Bank has nothing to do with charging VAT.
2. same as #1 applies if you ,as an EU businessman, order services from a company located in anohter EU country (e.g. hosting) though in this case there is no minimum value, so you always need to register for VAT before ordering services for your business. You also need to register (not pay) if you deliver B2B services into another EU country where the customer/client (another business) pays the VAT. Generally, the VAT is paid in the country where the service is utilized in case of B2B.
The VAT registration and paying as defined above does not make you a regular VAT payer (if you are not one), it is just for the purpose of B2B international trade/services in EU.
If you order hosting services from a company located in another EU country as a regular customer (non-business person), it is the hosting company that pays VAT and you dont need to register for it.
..that's why I use my hosting account as a regular customer and don't put that in my business expenses.