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What is Value Added Tax (VAT)?

Article Number: KB 1692

Product: Accounting/Reports

Audience:eNom Reseller, eNom Central, Bulk Register

Problem

What is European Union Value Added Tax (VAT), and who may be charged VAT?

Solution

What is European Union Value Added Tax (VAT)?

VAT (Value Added Tax) is a tax on consumer spending within the territory of a European Union (EU) Member State. VAT is not included in prices displayed on eNom’s site. When applicable, VAT is charged separately and will be itemized on invoices and billing information. VATs are NOT Refundable.

eNom is a U.S. company. Why are you collecting VAT?

As a non-EU supplier of electronically supplied services (domain registrations, SSL certs, etc.) we are required to account for VAT on these services provided to EU non-business customers. We are collecting VAT and will be paying the EU, via Ireland where we are registered, on a quarterly basis. We are required to comply with Council Directive 2006/112/EC on the common system of value added tax.

Who may be charged VAT?

As a non-EU supplier of domain and web hosting services to customers in the European Union (EU), eNom is required to comply with the European VAT (Value Added Tax) regulations and charge VAT to non-business customers located in the EU.

Customers categorized as Business or Charity users in the EU may be required to self-account for VAT. For eNom to determine if you may fall into this category and not charge you VAT, you must supply your VAT number. If you are not familiar with the VAT self-accounting rules in your country, please contact your accountant or professional adviser for more information.

There is no VAT number on the invoice, so you cannot charge the VAT.

The invoice will have our VAT number on it by the end of the month. We are still obligated to collect VAT, and business customers are still required to comply with EU VAT requirements for reverse-charge.

We’re not required to charge VAT on these supplies as they’re made by eNom, in the US, which is outside the scope of VAT.

This is incorrect. We are a registered company for VAT under MOSS in Ireland as a non-EU supplier of electronic services, and have our own VAT Number. Our number is EU372003356. We are collecting VAT in Business to Customer sales only. All customers supplying a valid VAT number will not be charged VAT. Instead they’ll self report under the reverse-charge scheme for EU VAT.

More Information

 

Last Updated: November, 2015

 

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