VAT rules

All intra-community acquisitions fall under the reverse charge mechanism as per the provisions of the EU VAT Directive implemented by all the Member States of the European Union. When buying from Vendoteka, you will beneficiate from this simplification measure for VAT purpose.

The economic advantage of buying from us is due to the fact that you will perform an Intra – Community Acquisition that it has no VAT cash a.k.a. you pay no VAT to your supplier.

The advantages of acquiring your equipment from another Member state of the European Union:

  • You only pay in cash the value of the goods – no VAT is payable to the supplier
  • The acquisition has no cash impact from the VAT perspective
  • You declare the VAT corresponding to the Intra- Community Acquisition but you do not pay it to the supplier as you would do it if you buy locally
  • Supplier beneficiates from the VAT exemption as he performs an Intra- Community Supply

WHY?

Intra- Community acquisitions fall under the simplification scheme called “Reverse Charge”. The goods acquired from a business partner established in another member state of the European Union, other than the one where your company is established will be declared in your books twice: on the deductible VAT and under the collected VAT. As a consequence, the VAT is only declared and never paid to the supplier.

Vendoteka, as the supplier benefits from the VAT exemption on the goods they supply to you. As such we will not add VAT on the invoice.

 

HOW?

Supporting documentation needed in order to justify the Intra-Community Acquisition in case of a tax audit:

  • Invoice that mentions a valid VAT ID of the supplier and the valid VAT ID of your company
  • AWB/ Transport documents that will prove that the goods are transported from another Member State of the EU to the address of your Company
  • Verification of your business partner: you can verify the valid VAT ID of your business partner at: http://ec.europa.eu/taxation_customs/vies/

The Invoice

The invoice you receive should contain the following elements (as per Article 226, Section 4 of the EU VAT Directive available at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:347:0001:0118:en:PDF ):

  • the date of issue;
  • a sequential number, based on one or more series, which uniquely identifies the invoice;
  • the VAT identification number referred to in Article 214 under which the taxable person supplied the goods or services;
  • the customer's VAT identification number, as referred to in Article 214, under which the customer received a supply of goods or services in respect of which he is liable for payment of VAT, or received a supply of goods as referred to in Article 138;
  • the full name and address of the taxable person and of the customer;
  • the quantity and nature of the goods supplied or the extent and nature of the services rendered;
  • the date on which the supply of goods or services was made or completed or the date on which the payment on account referred to in points (4) and (5) of Article 220 was made, in so far as that date can be determined and differs from the date of issue of the invoice;
  • the taxable amount per rate or exemption, the unit price exclusive of VAT and any discounts or rebates if they are not included in the unit price;
  • mention “Reverse Charge”, reference indicating that the supply of goods or services is exempt or subject to the reverse charge procedure

Please note Vendoteka will provide you with the correct support documentation, as per the provisions of the VAT Directive.