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VAT on online English lessons in EU

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  • 04-02-2015 7:37pm
    #1
    theflipdave
    Registered Users Posts: 58 ✭✭


    This is related to a previous question. I want to provide English lessons online now to other EU countries. But with the new EU rule as of the start of 2015, I must charge VAT at the rate and threshold for the country the resident lives in. Is there any where online I can view the thresholds for VAT and rate of VAT for other EU countries?


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    #2
    CantGetNoSleep
    Registered Users Posts: 7,251 ✭✭✭CantGetNoSleep


    Take a look here it might be a start

    http://www.revenue.ie/en/tax/vat/leaflets/mini-one-stop-shop.html


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    #3
    Trojan
    Registered Users Posts: 16,413 ✭✭✭✭Trojan


    Talk to an accountant, because "training" is a weird one. Sometimes it can be VAT-0, sometimes VAT-23.

    http://www.revenue.ie/en/tax/vat/rates/decision-detail-04617.jsp
    Rate: EXEMPT

    Remarks:
    Exemption applies to language training provided by a tutor, similar to school or university education. The supply of Language learning packages including books, CDs etc. where they are incidental to the provision of education/training itself is also exempt. Otherwise, such learning packages are taxable by reference to their content.

    🎙️ The Recognized Authority Podcast



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    #4
    devildriver
    Registered Users Posts: 874 ✭✭✭devildriver


    theflipdave wrote: »
    This is related to a previous question. I want to provide English lessons online now to other EU countries. But with the new EU rule as of the start of 2015, I must charge VAT at the rate and threshold for the country the resident lives in. Is there any where online I can view the thresholds for VAT and rate of VAT for other EU countries?

    The huge problem for small businesses across Europe is that there is no lower threshold so whether you sell 9 or 9 million euros worth of services you are still subject to the same VAT rules.

    More information here:

    http://euvataction.org/

    Trojan wrote: »
    Talk to an accountant, because "training" is a weird one. Sometimes it can be VAT-0, sometimes VAT-23.

    http://www.revenue.ie/en/tax/vat/rates/decision-detail-04617.jsp

    If the service is being provided electronically then it falls under the VAT MOSS rules where you must account for VAT in the customer's location. The reference above to CD's and books would constitute physical products being shipped. The problem is that a lot of accountants don't even fully understand the implementation of this new legislation yet. It's complex.


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    #5
    dbran
    Registered Users Posts: 2,094 ✭✭✭dbran


    Hi

    Teaching services, where the course content is delivered by a teacher over the Internet or an electronic network would not be considered an electronically supplied service so the place of supply rules in this instance do not change. If your customers are non registered persons the place of supply is Ireland and presumably training/teaching are exempt supplies. If your customers are business then the place of supply is where the customer is and they account for the service on the reverse charge basis.

    If there is no human intervention eg the customer downloads files, podcasts etc then this would be electronically supplied services and you would need to register for MOSS and account for the VAT accordingly.

    dbran


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