About the extra money, maybe that it could be useful for AmiDark to buy a new OS4 system. And only for a OS4 system because all the backers are OS4 users.
[quote]...VAT is not included for invoices within the EU (but would be included if for example invoicing a US company)...[/qoute] That doesn't sound right. A company/person outside the EU doesn't pay VAT as long as the products/services are consumed outside the EU (which they would be, even if you do the programming within EU borders).
If you were required to charge VAT on everything sold to people outside the EU, then I would get double-taxed with VAT and NZ GST on everything that I buy from the EU. Not only that, but I'd be paying tax that funds a foreign country's government services that I don't even use. That would be a big motivator to never do business with anyone in the EU.
(Note: I'm talking about services not products, I have no idea what the status is there, but I do know for a fact that it's an entirely different and more complex game).
I've been invoicing companies in the US/EU since 2004, for software development services rendered and I've never had to include VAT inside the EU (mostly Germany and UK), but I did have to include it in the price for US based companies -as I did have to pay it locally in the end. I think this falls in the category of double-taxation avoidance treaties between the countries, I think Greece/USA have been signed only very recently. It's different between every country it seems, the only common ground is VAT exemption between EU countries. For that matter, I have no idea what the case would be if I had to invoice a NZ-based company, when in doubt, I just ask my accountant who definitely knows more than me in such matters :)
(Note: I'm talking about services not products, I have no idea what the status is there, but I do know for a fact that it's an entirely different and more complex game).
I know. What I said applies for both, although the definition of where a service is "consumed" is more complex than a product. Either way, where you do the work isn't the defining factor.
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I've been invoicing companies in the US/EU since 2004, for software development services rendered and I've never had to include VAT inside the EU (mostly Germany and UK), but I did have to include it in the price for US based companies -as I did have to pay it locally in the end. I think this falls in the category of double-taxation avoidance treaties between the countries, I think Greece/USA have been signed only very recently.
I doubt it. Tax treaties usually cover income tax. VAT, GST, and similar sales taxes are not an income tax, but a consumption tax. You don't pay the tax, your client/customer does; the government just appointed you to be the tax collector.
In fact, if I sell enough to customers in EU countries, then the EU claims that my NZ company would have to become VAT registered and start collecting VAT. Yes, even if my company has no physical presence in Europe. **
I think that this is more of a case of VAT becoming so complex that even accountants don't understand/agree-on the rules. There's a similar problem with sales tax in the USA, where there are disagreements as to whether/when an out-of-state (or even foreign) company has to collect state sales tax. I distinctly remember someone claiming that they had to charge VAT on the software that they sold to people outside the EU, despite the fact that official EU government websites say to the contrary, and that other EU companies don't. Well, that's what his accountant said...
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For that matter, I have no idea what the case would be if I had to invoice a NZ-based company, when in doubt, I just ask my accountant who definitely knows more than me in such matters :)
Yes, you definitely need to trust your accountant; trying to figure it out on your own can make your head spin.
Fortunately for me, NZ law for GST is much simpler. My headaches start when places like the EU and USA start trying to claim jurisdiction over online transactions involving their citizens, even if the website is in a different country.
Hans
** NOTE: AFAIK, there's still debate as to whether governments can assert jurisdiction over online transactions taking place on foreign websites. My website clearly states that all use (incl. sales) will be governed by NZ law, but I don't think that the jurisdiction matter has been properly tested in the courts.
As I said in a private message, I am pretty sure I have to invoice a legal entity, and not an individual, so that means having a VAT # is a must. Maybe you could find some Amiga-related company that could accept the invoice? Furthermore, I will send the invoice, when I have completed the number of hours promised and when some results can be shown and replicated by others, but not before. It's not going to take long though, I hope to be done sometime within the next 10 days or so.
I think that this is more of a case of VAT becoming so complex that even accountants don't understand/agree-on the rules. There's a similar problem with sales tax in the USA, where there are disagreements as to whether/when an out-of-state (or even foreign) company has to collect state sales tax. I distinctly remember someone claiming that they had to charge VAT on the software that they sold to people outside the EU, despite the fact that official EU government websites say to the contrary, and that other EU companies don't. Well, that's what his accountant said...
I remember some years ago I asked just this thing to my accountant and he had to call the tax agency, and some fellow accountants, on whether one can deduct VAT from services to a US company. He was definitely confused at first but eventually it turned out that services are different from products -for which you can go to customs and collect the extra VAT paid. There is supposed to be some different status quo in this case -he did refer to some laws, I can ask if you like- but the end result was that I had to include VAT in the invoice for s/w development services rendered to a US company. I also think that this whole situation is hellishly confusing and overcomplicated, but since I got the final ack from my accountant, I have no choice but to follow his suggestion.
@feanor I dont know for Greece, but in Italy it's possible to do invoices also to normal people, not only to company, the vat number it's not mandatory everyone here have it's own fiscal code, naturally this way the vat is lost
Intra-EU invoicing needs valid VAT # I think, as invoices are registered to IntraStat/VIES service for cross checks, but I'm going to ask my accountant nevertheless.
...There is supposed to be some different status quo in this case -he did refer to some laws, I can ask if you like- but the end result was that I had to include VAT in the invoice for s/w development services rendered to a US company....
No need to ask. The chances are that if you asked a different accountant then you'd get a different answer. Besides, the insaneness of VAT/sales-tax laws is off-topic in this thread.
Sure I could do that, but as I work as a freelancer already, invoicing for my services is something I do anyway and thought people would take it for granted.
You can't ask someone who works on something as afreelance professional to take a payment as a hobby.
In fact any works done for pay is liable for income tax, whether it's a hoby or not. The tax man does not differentiate n that way.
The seperate complication of VAT here is because I presume feanors turnover is usfficiently high to require VAT registration or he has voulentarialy registered (whichever is not our business).
The fact is most bounties are taken by amateurs, who probably don't kep their tax affairs in order (unless they are self employed), that's why formalities are overlooked.