V.A.T invoice abroad(EU)

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Deleted member 25779

  • #1
    Hi All,

    I explain the problem:

    People are uploading their songs on my site, I will then keep a commission of the sales.
    I will have 3 types of customers:
    -artist from outside EU
    -artist from EU
    -artist from EU but V.A.T registered

    I will have to repay their royalties.
    If the artist lives outside EU it is simple, I just invoice £1 with no V.A.T
    If the artist lives in UK, I will pay them £1 +V.A.T

    But how will I repay an artist living in any of the EU countries?
    I have it was zero rated, does this means I pay them £1 + 0% V.A.T?

    Please help, I am having a nightmare setting this up.

    Thank you so much everyone!


    Bambinou,:p

    ps:if you have knowledge of quickbooks pro 2008, how would you setting those 3 types of payments ?
     
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    D

    Deleted member 25779

  • #3
    for the Quickbook help I can still have a look online but my problem is in the understanding of paying someone abroad that is V.A.T registered, I am still lost with this.


    Many thanks

    BamBam
     
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    F

    frauke

  • #4
    bambinou said:
    Hi All,

    I explain the problem:

    People are uploading their songs on my site, I will then keep a commission of the sales.
    I will have 3 types of customers:
    -artist from outside EU
    -artist from EU
    -artist from EU but V.A.T registered

    I will have to repay their royalties.
    If the artist lives outside EU it is simple, I just invoice £1 with no V.A.T
    If the artist lives in UK, I will pay them £1 +V.A.T

    But how will I repay an artist living in any of the EU countries?
    I have it was zero rated, does this means I pay them £1 + 0% V.A.T?

    Please help, I am having a nightmare setting this up.

    Thank you so much everyone!


    Bambinou,:p
    Click to expand...

    What you are actually doing is using "self-billing invoices". This means you are providing the invoices for yourself to pay your artist. What you need to do is think - if the artist produced the invoice (instead of you with self-billing) would you have to pay VAT?

    If the artist is not VAT registered you don't pay VAT, as they would not invoice for it. (And that includes UK Artists) You are asking the question as you are VAT registered - so if the EU artist is VAT registered (and they will have given you their VAT registration number), then because you also have supplied your VAT registration number, you don't have to charge VAT.
     
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    Deleted member 25779

  • #5
    Thanks for your help Frauke,

    So, If I understand properly when 2 people from EU are V.A.T registered, the V.A.T is cancelled out?
    This means I will pay the V.A.T myself and ot pass it on to the EU artist, Am I right?


    Regards,


    Ben
     
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