New Post: Tax question

Hi David,

I think you're wrong.

Let's assume A is a merchant from a EU country and sells something to B.

1) B is from the same country.
1a) B is a private person and has to pay the VAT.
1b) B is a reseller. He has to enter his VAT code, but he has to pay the VAT as well. Both VAT codes (from A and B) have to be printed on the receipt.

2) B is from another EU country.
2a) B is a private person and has to pay the VAT.
2b) B is a reseller. He has to enter his VAT code, and doesn't have to pay the VAT. Both VAT codes have to be printed on the receipt.

3) B is from a non-EU country. He has to pay the VAT.

This is also the reason why it is important to check the validity of the VAT number.

There is another point:

If B comes from another EU-country, and A has delivered products to this country during the current year that exceed a certain value, then A has to add the VAT of B's country on the receipt and needs a tax account in this country. Eg. if A is from Austria and B from Germany, and A has delivered products with a value of € 50.000 to Germany in the current year, then A needs a tax account in Germany and has to add 19% of VAT (German VAT, Austrian is 20%). He must pay this to the German tax office.

Best wishes
Michael