[ic] Help !! TAX RATE, VAT and TRANSLATION to SPANISH

Kevin Walsh interchange-users@interchange.redhat.com
Fri Mar 22 07:03:01 2002


> > Of course, if you are exporting to a VAT-registered EU company,
> > you need not charge VAT at all.  Just make a note of their VAT
> > (or BTW/IVA/TVA/FPA/MOMS/MWST or whatever) registration number
> > and let them pay the tax, at their local rate, when they do their
> > accounts.
> >
> True, as noted above, but I've never found a way to check the validity. 
> Every country has its own format for a VAT number, and some (like Ireland) 
> can have more than one format. It needs something like the LUHN 10 
> algorithm for CC checking modified for VAT numbers. Otherwise, if 
> you just rely on trust, then someone will give you a false number 
> and then the VATman really will be after you for his dues. 
> 
You can rely on "trust" for VAT-less exports.  If the goods have
been exported then your friendly VAT man has no claim on you for
the tax, so he won't bother you about it at all.  You do need to
be able to prove that the goods have left the country so keep the
shipping receipts, as you would do anyway.

It is up to the recipient to pay the tax.  If they commit fraud
by providing a false VAT number then it's their neck on the block,
not yours.  After all, they are the ones who owe the tax and are
evading it.  The only reason you need to keep a note of the supplied
VAT number is for the invoice cross-checks and verifications that
the various tax offices do periodically.

I have always treated "services exports" the same as "goods",
charging VAT on all services unless a registration number is provided,
or the customer is outside the EU (or within the UK).

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