Don’t you pay VAT upon importing anything into the EU? So, as a private person, you’re stuck. As a VAT payer (company) you just write it off.
Doesn’t even need to be from the US, importing from CH would work the same. For cars it is ((((value)+ tariff)+ excise tax)+ VAT).
The “VAT is due at end of the supply chain” logic (where you are not charged VAT from a different country but add it yourself) is common across the EU, AFAIK.
Just how do you import nav data that is downloaded onto a stick via the internet? Alexis when you get your bill from Jeppesen does it give a local EU address or is it from the states?
The invoice is issued by Jeppesen GmbH in Frankfurt, Germany
Jan_Olieslagers wrote:
In the US system, a product that passes through (say) 5 stages from manufacture to end user will (basically) get charged sales tax 5 times
US buyers who commonly buy for resale get a ‘resale number’ and if you have one when buying, the seller does not collect state sales tax. Sales tax is only collected by the final vendor, on the final sale to an end user who is in state, and who does not have a resale number
C210_Flyer wrote:
Does anyone who gets Jeppesen Data and downloads it via the internet yet has an address in the EU (Germany or Hungary) get charged a VAT or sales tax?
I’d pay with a credit card having a US billing address. If the vendor has operations in the US billing address state, you’ll probably still pay state sales tax.
Jepp Germany charge VAT unless you are VAT registered and outside Germany then they remove VAT under the reverse charges method.
What is the reverse charge method?
One doesn’t charge VAT on EU sales if the customer supplies a valid VAT number but that won’t be of much use to most here.
If Jepp sells to a European company (except in Germany), they will bill w/o VAT thanks to the intracommunity VAT number.
But, in your accounting entries, you will have to make this “virtual VAT” appear, so that it also appears in your VAT declaration.
To do so, in the same accounting entrie, you will credit VAT to the “European VAT” account and debit it from the “Deductible European VAT” account.
In french, you call that “auto liquidation”, or “reverse method” as Jason said.
Here you can find an exemple of such an entry, with oil purchased from Sky Fox, a German Company.
Ok. In the uk this is dealt with (in accounting software and by HMRC) by the EC Sales List method. However that applies only to vat registered bodies…
Regarding the OP…
Jepp USA should never charge vat. However the customer in the EU should pay it on import. With software downloads the vat is often avoided, illegally.
Jepp Germany should charge vat to an eu based customer, unless he supplies a vat number.
Jepp Germany should not charge vat to a non EU based customer.
The above is based on my 38 years in business.
This is what I have understood so far.
(But I have not such an experience !)
Jepp Germany should charge vat to an eu based customer, unless he supplies a vat number.
Indeed, and the example accounting entry shows the last: the invoice only mentions a cost of 194,92€ and a debt of the same amount. When registering the invoice, one must charge VAT to one’s self and deduct it at the same time – that is the second and third line in the accounting example. The amount of 38,98 € does not figure on the invoice, which makes things a bit confusing. I tried to describe the exact same Belgian procedure in #04 – it is more universal than I first thought.
And yes, all this applies only if both parties are subject to EU VAT.
