25% Vat??

shayser

Was looking at buying Adaware Enterprise from lavasoft.de. They want to charge 25% extra for VAT. Can they do that? Thought VAT was paid at the point of entry for imports.

Quote from lavasoft website:

Sales Tax/VAT Information

The seller of this product, Lavasoft AB, is located in Sweden and therefore charges the standard rate of sales tax/VAT applicable there.

BuffyBot

Point of entry into the EU I think, rather than the individual country - therefore buying from Sweden means you pay their rate if I recall correctly.

BrianD

Companies now have two options on how the charge VAT on goods/services that are in free circulation within the EU:

a) Charge the VAT rate applicable in the country that they are based e.g. 25% in Sweden

b) AFAIK if they do sufficient business in any other EU country they can register there and charge the VAT rate of that country.

I thought we had the highest VAT rate but obviously not!

halenger

Off topic but no, we don't have the highest VAT rate. We're in the top 5 though, I think.

I wasn't aware of being able to register for VAT in other countries like that. *makes a note for future "ooh look at what I know" sessions*

BrianD

You'd need to research it ... afaik you have to do a considerable amount of business in that country to make it worthwhile (€35k plus). Plus you have the admin of doing another set of vat returns.