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Where's my VAT ? (12)

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Yo ! I've been looking for where VAT is calculated in FB ads and can't see it anywhere. Also i'm not sure either i'm paying it or not.
As far as i can see, Business pays them, people not. And there's some strange part related to Ireland VAT i don't understand at all.

Facebook resources on this are kind of vague, don't really see the point. Can anyone recommend where to look at ? When i see the invoices they're not very transparent. Would love Facebook making things easier

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Both businesses and people pay VAT.

VAT registered companies can apply for a refund and to make this easier, companies within EU do not charge the VAT to each other at all in case of cross-border payments - they would ask for a refund anyways so it would just create unneeded load on the officials.

In case you registered as a EU company and gave them your VAT ID, the sum on the invoice is without VAT.

In case you registered as a "person" they should charge the VAT to you tho.

I'm not sure what they have to do in case you register as an out-of-EU entity, but I'm pretty sure in that case they don't charge VAT.

So what is your case actually?

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Yep, Matuloo's right: out-of-EU entities don't pay VAT. But they may have their own local taxes to pay.

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Little side note: Important to check that every company you're working with has a valid VAT number, otherwise its impossible to reclaim it.
Here you can check it online: http://ec.europa.eu/taxation_customs/vies/

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You don't need to reclaim it at all, you just need the VAT ID of the company you work with and you also have to supply yours to them and that's it, no VAT will be charged (unless you are both in the same country).

You are right thoo that the VAT number has to be valid, on both sides again, otherwise there can be problems later on.

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In some EU countries if the EU company you're invoicing doesn't have a valid VAT/VIES number, then you have to charge VAT and if you don't you'll get some nice penalties at your next audit

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Where are you based?

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It's not in some, it's in all EU countries. You either get the VAT ID from the company you invoice or are invoiced from, in which case you are entitled to enjoy the reverse charge mechanism, or you don't and then the VAT has to be charged.

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This is true for all services such as media buying and selling. For physical goods (i.e. goods you can touch and that are tangible) there is always VAT in and between all EU countries.

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Technically that's true - physical goods have VAT charged on them.

However, the VAT is usually treated as Matuloo mentions (at least in the UK) - once you have the purchaser's VAT number you zero-rate it, then declare the VAT charged and reclaimed on your VAT return. Of course, with VATMOSS (EU-wide VAT unification) that all gets considerably hairier as you need to be able to prove that the purchaser was EU-based, and the rules for proof are a bit of a bear.

See https://www.gov.uk/guidance/vat-expo...g-goods-abroad .

Generally, this stuff gets super-complicated fast, and that's why I pay an accountant!

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Not true, even in case of physical goods, you can use the reverse charge mechanism and buy/sell without VAT in case both parties are VAT registered companies and they are not in the same EU country. I personally bought a car from Germany this way, I showed the seller a VAT certificate and they sold it to my company without VAT.

The only exception Im aware of is when you sell something to a company from a different country, but the goods actually do not leave your country as the buying company actually uses them in it. Then you would have to charge the VAT.

VAT is pretty complicated beast, I also recommend always consulting a good accountant

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Depending on where you are based, it is perfectly possible that you are not charged VAT.

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