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

[mally]

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

 

[Brassneck]

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

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.

 

[retired_member12]

***************

 

[mally]

bump, any one know?

 

[sedo]

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.

 

[mally]

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?

 

[rob]

Sedo is only a third-party facilitating the transaction between Buyer and Seller and cannot issue an invoice.

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

 

[sedo]

We only invoice for the commission.

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

regards

Joanna

 

[anthony]

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.

 

[sedo]

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.

 

[rob]

If you know the seller is VAT regged why do you charge comission on the VAT?

ie. I 'sell' a name for £1000

Sedo knows I am VAT regged therefore its a £851.06 sale, with £148.94 VAT collected.

Sedo therefore should charge 10% of £851 , but you dont, its on the 'final' price of £1000.

 

[sedo]

I have passed your feedback on to [email protected].

Kind regards

Joanna

 

[rob]

Its not feedback - its a question. ie. why are Sedo charging comission on tax.

What service are you providing?!

 

[sedo]

We are international and all countries have different vat rates in the eu.
Our commission is tax free so you can only claim on the vat for the actual sale.

I have sent your feedback on to management as it is good to let them know in case they can change the process to make it easier.

I am unfortunately not management or in the accounts department I am an account manager trying my best to provide you with a service.

 

[anthony]

If you know the seller is VAT regged why do you charge comission on the VAT?

ie. I 'sell' a name for £1000

Sedo knows I am VAT regged therefore its a £851.06 sale, with £148.94 VAT collected.

Sedo therefore should charge 10% of £851 , but you dont, its on the 'final' price of £1000.

Very good point there rob, a quick call to HM C&E to ask them for clarification might be in order.

Using your example:
YOU sell for £851.06
YOU collect £148.94 VAT from the buyer
YOU, as a business, expect to pay £85.10 plus £14.89 VAT to Sedo
You owe HM C&E £148.94-£14.89 = £134.05

Whereas:
YOU sell for £851.06
YOU collect £148.94 VAT from the buyer
YOU currently appear to pay £100 plus £17.50 VAT to Sedo
You owe HM C&E £148.94-£17.50 = £131.44

Net result:
You are down £14.90 profit, but...

HM C&E are out of pocket by £2.61 on VAT because you may have claimed back too much.

I'm not sure they would like that, these are business transactions after all.

 

[anthony]

...Our commission is tax free so you can only claim on the vat for the actual sale...

You what? You are VAT registered in Germany, your registration number is DE813182233, how are you able to issue commission free invoices? You're having a laugh aren't you? Do you realise what you are saying?

 

[rob]

Stick a couple of zeros on my example and several years of similar trading behaviour and the problem becomes quite serious.

I have mentioned it before:
http://www.acorndomains.co.uk/sedo/67694-would-you-rather-pay-50-50-50-a.html#post244087 ( which was referencing a thread from 2006 http://www.acorndomains.co.uk/sedo-exclusive/8782-sedo-payment-issue-domain-sales.html , which could have gone back to 2005 http://www.acorndomains.co.uk/sedo/1958-contact-sedo.html#post6587 !)

VAT issue mentioned http://www.acorndomains.co.uk/sedo/26262-when-next-sedo-auction-uk-soil.html#post98776 2007 http://www.acorndomains.co.uk/sold-domains/36929-bam-co-uk-6-5k.html#post134981 2008 etc etc

Not the first time nor last.

Will sedo repay the comission on VAT they have collected off me over the years?!

 

[sedo]

You will find this on the commision invoice:

This is a tax-free extra service. Your VAT registration number: ########
The date of the service’s provision is the date of invoice.
The reversal of VAT liability referred to in § 13b UStG applies.

 

[ratboy]

Ohh, where are these commission invoices kept? Can't find mine in my account...?

 

[rob]

Ok - lets take a worked example.

Zinger.co.uk sold £300
Sedo Comission £30
Total Amount: £270

You know I am vat regged, so thats a £255.32 sale, ie. £44.68 VAT.

10% of sales price ought to be £25

Question: Why do you charge comission on tax?