Quote:
Originally Posted by NatalieK
Now the platform would claim vat back from the amount paid to the creator
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Yes you are correct!
Quote:
Originally Posted by NatalieK
the creator would then still be left paying the vat on the income received as this part of payment again needs vat paying
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I think it depends:
I don't want to talk about MC because I don't know them. Let's assume a platform run by a company called Company and let's say you make $100 earnings.
If Company's based in Spain for billing purposes then they owe you $121. You keep your $100 and you pay $21 to your gov.
If Company's based anywhere in the EU except Spain for billing purposes then they owe you $100. Company has to charge themselves $21 (reverse charge) and they can claim it back like you said. You don't collect VAT from them though you have to file a report.
If Company's billing address is outside of the EU (ex: Brazil). It's out of scope for VAT.
What happens between Company and the consumer is not relevant, it is a separate step in the chain, it is their problem.
Again the easy way is to ask for an invoice, everything is in it.
