SEDO - How do I know if I've paid VAT?

Discussion in 'Sedo' started by mally, Apr 19, 2010.

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  1. mally United Kingdom

    mally Well-Known Member

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    Hello all.

    I've gone limited and I've checked my past to see if I've being paying VAT on purchases.

    I've checked all the invoices from SEDO regarding domain purchases and none of them have VAT included. I'm presuming some of the sellers must have been VAT registered.

    Is there a way of checking?

    Thanks Mally
     
  2. Domain Forum

    Acorn Domains Elite Member

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  3. Brassneck United Kingdom

    Brassneck Well-Known Member

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    very good question that I was wondering about from a seller's perspective. How do I know easily if VAT was chargeable for the sales I have made?

    Stephen.
     
  4. retired_member12

    retired_member12 Retired Member

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    ***************
     
    Last edited: Apr 20, 2010
  5. mally United Kingdom

    mally Well-Known Member

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    bump, any one know?
     
  6. sedo

    sedo Sedo Staff

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    It is not possible to add VAT to the payment request. The payment request is not an invoice and therefore has no VAT. Sedo is only a third-party facilitating the transaction between Buyer and Seller and cannot issue an invoice.

    The laws regarding sales tax vary greatly from country to country. We therefore cannot provide details for all countries around the globe. Below, you will find some brief tips to guide you. Please note that these are in no way to be seen as legal advice regarding VAT tax laws, but simply to give a brief overview.

    * If you are a buyer or seller based in the USA, VAT does not apply to your transaction.
    * VAT only applies if the seller is trading as a company which is VAT liable. The seller's VAT status is available on the domain offer page in the Meet the Seller section. If the VAT status shows as "Applicable" the seller has indicated they are trading as a VAT liable company. If you are a seller trading as an individual, sales tax does not apply.

    The information outlined below only applies to you if you are a seller or a buyer trading as a VAT liable company outside the US. If you are not trading as a VAT liable company, you do not need to read on any further, other than for your own interest.

    Sellers should always be aware that the price they sell their domain for is the gross price. In most cases, as the majority of buyers are not VAT liable companies, a domain you sell for £2,000 will net you £2,000. However, if the buyer is trading as a VAT liable company and requests a VAT invoice from you, you will then have to pay VAT on the sale in the country you are operating in.

    It is worth bearing in mind when replying to potential bids that you review the buyer's information so you are aware if the buyer has indicated they are trading as a VAT liable company and to see which country they are trading from. This information can be found within the bid thread details in the Information about the Buyer section. If the buyer has indicated they are a VAT liable company their VAT stauts will show as "Applicable". If this is the case you should alter your sales price accordingly so that your net gain remains the same.

    Another tactic may be to set all of your asking prices as your desired net price plus your country's VAT to ensure you do not sell the name at a price which does not match your expectations.

    If you are trading on Sedo as a VAT liable company, you need to choose 'Company' in your user account and enter a valid tax registration number.

    Again, we reiterate that these guidelines are to be seen as just that, guidelines. If you have a more specific query, please contact your local tax authority or accountant.
     
  7. mally United Kingdom

    mally Well-Known Member

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    I've read the above, but

    I'm the buyer and I am VAT registered.

    So how do I know if the seller is VAT registered and shouldn't this be shown on the my sedo > billing information page

    You say whats listed there are not invoices, how comes the page link includes the words "invoice list" says

    https://www.sedo.co.uk/member/invoicelist.php4?tracked=&partnerid=&language=e

    How do I go about getting a valid invoice?
     
  8. rob

    rob Founding Member

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    You charge for that service, do you issue invoices for your services provided?
     
  9. sedo

    sedo Sedo Staff

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    We only invoice for the commission.

    If you require an invoice with VAT you will need to ask the seller for one.

    regards

    Joanna
     
  10. anthony United Kingdom

    anthony Well-Known Member

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    Surely Sedo should consider facilitating a method so that a buyer, beforehand, will know if they can get a VAT invoice from the seller, whether they are overseas sellers, EC or non-EC, etc, without having to delve into profiles etc, and to know which country they are based in? If it transpires that both the seller & buyer are VAT registered companies, then clearly they both need to know as early as possible. Also, if you make it so that the prices shown at all stages are inclusive of VAT by default (where applicable), then there is no confusion over that either. I'm not sure it matters whether Sedo are based in Germany or working out of the UK for UK transactions, as far as Europe is concerned, don't the Single Market directives apply?

    Given that Sedo are VAT registered in Germany (DE813182233), I would have thought you already issue VAT invoices as a standard practice. However, given that fact, how do you manage your own 'EC Sales List' sheets regarding your customers VAT numbers? How do you notifying the German Tax Authority of your overseas sales without that information, if you have it set up as a default in the system, it's then nothing to extend it to the parties concerned.

    Assuming you have the correct systems in place, then it cant be much of an effort to satisfy the VAT questions posed in this thread.
     
    Last edited: May 6, 2010
  11. sedo

    sedo Sedo Staff

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    I have answered the question.

    This information can be found within the bid thread details in the Information about the Buyer section. If the buyer has indicated they are a VAT liable company their VAT stauts will show as "Applicable"

    We cannot create an invoice for something we are not accepting money for.

    As I said we can only create an invoice for the commission fee which we receive.

    The sales contract for the domain is between the buyer and the Seller.
     
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