Hi there,

I'm based in the UK and have to be registered for VAT due to my main business (not web based).
I'm finally going to try and actively make a profit from my LinksSQL site!!

My questions are as follows (any advice or other links would be appreciated).

I'm planning to use Paypal to process payments.
1) Do I need to add VAT to the payments made for premium links etc. I'm providing a service but not actually shipping physical goods?
2) Do I need to apply VAT to users based only in the EU and if so do I charge a standard rate of 17.5% for all of them or adjust per EU country?
3) Where can I get a list of standard rates of VAT applicable to countries?
4) Do I need to send an invoice seperately to all purchasers or is the Paypal receipt enough?
5) Enough already!

Cheers,

Piers

It may be worth finding out about the VAT legislation at:

http://www.inlandrevenue.gov.uk/

There's also a ton of info at:

http://www.hmce.gov.uk/...id=INTRODUCTIONTOVAT

Oh yes. My problem was trying to define what services a web directory came under.

In my case where I don't ship any physical goods, I understand it like this;
The directory is classed as an "Electronically Supplied Service".
This means that its place of supply occurs in the country where a business belongs.
This in turn means that I only charge VAT on businesses belonging in the UK at a standard rate of 17.5%.
Other EU countries don't get charged UK VAT
Other countries outside of the US don't get charged UK VAT.

This is a very particular set of circumstances, so it will vary depending on what services you provide.
I think I now understand how it works!!
Cheers,

Piers

I did find, that below 10.000 EURO, I did not needed to collect VAT from EU countries.
I transferred VAT back to some of my clients, when VAT was collected in the confusion of unclear laws.

Best regards,
Webmaster33

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I use PayPal to take payment on rare occasion and I physically deliver goods but to the UK. I hope my understanding is correct, but Paypal does not indicate that it charges me TAX (local or otherwise), therefore I don't charge my customers, thus don't claim any tax back.

Another question:

I have recently incurred a few bank charges for cheques (previously been free banking), when my UK bank charges me 40p for each cheque, is this including VAT ? Can I therefore claim it back ?