Moms (VAT) Problems

[Hally]

Due to the very nature of PE this cant be done properly and also under common tax laws if your required to charge VAT you can also deduct expenses and get return on payed VAT

I think this stuff will apply however on earning on player created items like if you sell alot of art in pe or create stuff in 2ndL

[Radio]

Originally Posted by aridash

You should be charging VAT to any EU based customer, check with your accountant. Its been like this afaik for some time now. I know for a fact I pay VAT to Dell based in Ireland.

If you're selling to a VAT-registered customer, you can zero-rate your goods as long as you:

*
include the customer's valid VAT registration number on your VAT invoice - see our guide on how to set up records and invoice correctly for VAT
*
send the goods out of the UK to somewhere in the EU
*
keep satisfactory evidence, including commercial invoices and shipping documents, proving that the goods have left the UK
*
hold sufficient evidence from your accounting records to prove that a transaction has taken place

If none of these apply you must charge VAT in the normal way.



>................................................. ........................................


Therefore I do not charge VAT on international transactions.

Originally Posted by Hally

Due to the very nature of PE this cant be done properly and also under common tax laws if your required to charge VAT you can also deduct expenses and get return on payed VAT

I think this stuff will apply however on earning on player created items like if you sell alot of art in pe or create stuff in 2ndL

[Acronoid]

If sweden would do such a thing, it is fairly easy to move the main chair of MA to andora, lightenstein or monaco.

[Sissi]

If i remember correctly, we do not actually own anything in EU.....

EULA quote:

As part of your interactions with the System, you may acquire, create, design, or modify Virtual Items, but you agree that you will not gain any ownership interest whatsoever in any Virtual Item, and you hereby assign to MindArk all of your rights, title and interest in any such Virtual Item.

end qoute.

ergo they should NOT be paying any VAT at all, as all transfers/sales/auctions are only virtual and not between 2 companies. From a taxing point no turnover is created, there is no customer to pay the VAT added invoice.

MA has very good lawyers and it seems accountants as well. Maybe its time to look into their tax/financial statement

[billairboy]

The VAT laws are complicated and not easy to explain. If and who is responsible to pay the tax diffrens if the buyer/seller is Swedish or non-Swedish, but the important thing is that is going to be totaly impossible for the players to manage. And it the players who is responsible for the tax, not MA. I made a support case and asked about it, but i don't hope i am going to get any real answer.

[aridash]

Originally Posted by Radio

If you're selling to a VAT-registered customer, you can zero-rate your goods as long as you:

Therefore I do not charge VAT on international transactions.

yes, im looking into it and you do seem to be quite right. however, this is for business to business transactions. I dont expect trades between individual avatars would qualify, unless they have a company/VAT registration, also we have no evidence of the buyer's location, nor any from of invoicing. so im afraid the bucket of water has still missed

Originally Posted by Hally

Due to the very nature of PE this cant be done properly and also under common tax laws if your required to charge VAT you can also deduct expenses and get return on payed VAT

I think this stuff will apply however on earning on player created items like if you sell alot of art in pe or create stuff in 2ndL

VAT charged on decay of crafted items?

Originally Posted by Sissi

If i remember correctly, we do not actually own anything in EU.....

one of the differences between sales tax and VAT is that it can apply to services too, or any where there is a transfer of value. added to this the EULA claim that EU is a service, not a game. bear in mind the OP translates to us that the regulation states players rather than companies and you have a rather sticky wicket.

somthing just popped up in reading, betting is not covered by VAT. funny old world aint it.

[LarsMac]

Originally Posted by Sissi

If i remember correctly, we do not actually own anything in EU.....

EULA quote:

As part of your interactions with the System, you may acquire, create, design, or modify Virtual Items, but you agree that you will not gain any ownership interest whatsoever in any Virtual Item, and you hereby assign to MindArk all of your rights, title and interest in any such Virtual Item.

end qoute.

ergo they should NOT be paying any VAT at all, as all transfers/sales/auctions are only virtual and not between 2 companies. From a taxing point no turnover is created, there is no customer to pay the VAT added invoice.

MA has very good lawyers and it seems accountants as well. Maybe its time to look into their tax/financial statement

That works for me.

[billairboy]

Originally Posted by Radio

If you're selling to a VAT-registered customer, you can zero-rate your goods as long as you:

*
include the customer's valid VAT registration number on your VAT invoice - see our guide on how to set up records and invoice correctly for VAT
*
send the goods out of the UK to somewhere in the EU
*
keep satisfactory evidence, including commercial invoices and shipping documents, proving that the goods have left the UK
*
hold sufficient evidence from your accounting records to prove that a transaction has taken place

If none of these apply you must charge VAT in the normal way.



>................................................. ........................................


Therefore I do not charge VAT on international transactions.

Yes, but the BUYER most declare the VAT. If UK company sells goods to a Swedish company the Swedish company, the buyer most declare the VAT.

[Dorsai]

Calipso has it's own sovereign government, that levies taxes already.
The UK does no attempt to collect sales tax from items bought/sold in Sweden, by Swedes, so how can Swedish authorities expect to collect taxed from the sovereign Government of Calipso, for items bought/sold by Calipsoans.

[Daikiba Old]

För att en deltagare ska vara skattskyldig till mervärdesskatt krävs att omsättningen görs i en yrkesmässig verksamhet. Av ML framgår att en verksamhet är yrkesmässig om den utgör näringsverksamhet enligt 13 kap. IL eller bedrivs i former som är jämförliga med en till sådan näringsverksamhet hänförlig rörelse och ersättningen för omsättningen i verksamheten under beskattningsåret överstiger 30 000 kronor.

My swedish comprehension skills are not the best, but doesn't the above mean that it only applies to people who are doing it "professionally"? (yrkesmässig verksamhet)...which means it would apply only to very very few people, and not the "normal" player selling a modfap, or whatever amounts to more than 30K kroner.