Do I need european VAT ID

[Menschik]

Hi all,
Thanks in advance to those who will read my question.

Here is the question: I have a business (tech website), where I sell ads. Occassionaly, I require someone to write reviews/articles and more often than not are these people from other countries (Slovakia mainly).

They are registered ad sole traders. When they invoice me, they always require EU VAT ID (checked via VIES) and say that if I do not have one, I could be in trouble. I am not VAT registered as my turnover is way below the threshold.

Now my question is, do I really need to register for VAT ID if I buy electronic services from EU?

Thanks in advance again. This, for me, is as confusing as it gets.
Lukas

 

[Dean Shepherd]

[Placeholder]

 

[Scalloway]

Does this apply?

https://ec.europa.eu/taxation_custo...-services/electronically-supplied-services_en

 

[japancool]

Does this apply?

https://ec.europa.eu/taxation_custo...-services/electronically-supplied-services_en

He's buying services though, not selling them.

 

[Scalloway]

Reverse charge may apply for the buyer.

https://www.gov.uk/guidance/vat-imp...oad#services-received-from-overseas-suppliers

When you buy services from suppliers in other countries, you may have to account for the VAT yourself - depending on the circumstances. This is called the ‘reverse charge’, and is also known as ‘tax shift’. Where it applies, you act as if you’re both the supplier and the customer. You charge yourself the VAT and then (assuming that the service relates to VAT taxable supplies that you make) you also claim it back. So the 2 taxes cancel each other out.

 

[japancool]

Reverse charge may apply for the buyer.

https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad#services-received-from-overseas-suppliers

Right, but that only applies if the supplier is raising an invoice to him without VAT applied, which they shouldn't be doing if he doesn't have a VAT number.

 

[Menschik]

To clarify that, my supplier does not charge VAT either. The law in Slovakia states that you need to apply for VAT ID (you do not become VAT registered in a sense), only for HMRC equivalent to monitor the cross border payments. She would not be charging VAT for anything else. But from I read, I guess it is easier to become VAT registered, apply for EU VAT ID and charge VAT.

 

[japancool]

To clarify that, my supplier does not charge VAT either. The law in Slovakia states that you need to apply for VAT ID (you do not become VAT registered in a sense), only for HMRC equivalent to monitor the cross border payments. She would not be charging VAT for anything else. But from I read, I guess it is easier to become VAT registered, apply for EU VAT ID and charge VAT.

Is your supplier VAT registered in Slovakia?

 

[Menschik]

No, the supplier is not VAT registered, though they have a special instance, where they can register for EU VAT ID which is only used for cross border payments. It isnt used on other invoices (within Slovakia)