VAT on sales to EU

[ELIFE-MZELIFE-MZ is verified member.]

Hi

I am sure someone asked about this before but I can't find the thread.

What is the situation re selling to customers outside of the UK? I managed to get through to HMRC but the lady pointed me to a section on their website and said "I think this is the relevant section but I can't advise you whether you need to charge VAT or not".

This is where I was directed to: https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#sec6

Thanks

 

[diablo]

Goods sold to EU are now zero-rated.

"Sales to EU business customers (previously known as dispatches) will become exports. For VAT purposes, the supply will continue to be zero-rated and evidence of the movement must be kept by the seller."

https://www.gov.uk/government/publi...-great-britain-and-the-eu-from-1-january-2021

Also:

https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad

 

[ELIFE-MZELIFE-MZ is verified member.]

Thanks @diablo

So are domain names classified as goods? The reason I ask is that the HMRC lady said they were service. I don't think fall under either personally.

 

[diablo]

Replied to PM

Would be interesting to know: if you are in Europe and a Nominet Member, are you charged VAT on names now?

 

[ukbackorderukbackorder is verified member.]

I am but at my local vat rate (18%) as it's always been.

 

[webberwebber is verified member.]

Would be interesting to know: if you are in Europe and a Nominet Member, are you charged VAT on names now?

I am the exact opposite – based in the UK and charged VAT by the Romanian ccTLD registry

 

[halhal is verified member.]

Cross border VAT on domain names seems very complicated. It depends on the place of supply (which depends on the classification of what is being sold) and whether the buyer is a consumer or a business.

@diablo, bear in mind that not all domain purchases are B2B. Obviously any buyer that is VAT registered in their country would be a business and I believe you can also consider a non VAT registered business as a business but in this case should save evidence that they are trading or intend to trade in case the authorities ever ask.

To complicate the situation even further, does anyone have a definitive answer on whether domain registrations are treated differently to aftermarket domains for VAT?

 

[Nick VL]

If I sell a domain name from The Netherlands to a company in the UK, the VAT should be 0% right? I'm also VAT registered in The Netherlands.