Required to pay VAT ? I'm in USA what does this mean?

[deet]

So I am looking at a domain listed on Sedo Auction and I see "Required To Pay VAT" listed on the sale.
In all my years I have not run into this issue. Can someone tell me what the VAT price will be?
The seller only accepts EUR so I'm looking to pay about 150 EUR as I am in the USA.

 

[Jannes]

Short answer: you pay 150 EUR.

Explaining why that VAT status is displayed on Sedo would require a longer answer.

 

[alcy]

So I am looking at a domain listed on Sedo Auction and I see "Required To Pay VAT" listed on the sale.
In all my years I have not run into this issue. Can someone tell me what the VAT price will be?
The seller only accepts EUR so I'm looking to pay about 150 EUR as I am in the USA.

Show attachment 291580

it's such complex matter that I sont get it

and neither do most.

short answer is.... they will do all they can including confuse the fock out of u to make sure they squeeze most out of u.

so things like..
oh.. but this is more about buyer location than seller ... or... sedo has some eu hqs somewhere...

etc

in short.. just bend over and take it. try to see bright side that hopefully u made happy enuf roi

 

[Leo2k]

VAT is applicable only if the buyer is from EU or has a registered business in EU.

Both Buyer and seller are from EU: Seller collects & pays VAT to the gov.

Buyer from EU or has a reg business & Seller from non EU : No VAT collected by the seller. Buyer pays VAT to the gov depending on the transaction.

Seller from EU & buyer from non EU: No VAT collected or payed by anyone.

 

[Hypersot]

Seller from EU & buyer from non EU: No VAT collected or payed by anyone.

That is not exactly how it works in this case.
The seller will pay VAT anyway because the sale amount will be added to the month's total income. So, it might not show in the invoice but the seller might have inflated the price to cover that.

 

[katerleonid]

Years ago, my accountants told me that I wasn’t supposed to pay VAT on digital goods revenue coming from the USA, even if I was registered for VAT. Maybe that has changed?

 

[Future Sensors]

Dan.com has provided a lot of detailed explanations on how they implemented VAT on their marketplace (RIP).

As @Jannes already hinted, the rules are full of subtleties, and whether VAT applies to a given transaction depends on the specific buyer and seller details. The final determination can only be made at checkout, once all relevant information from both parties is available.

https://www.namepros.com/search/1/?q=vat&c[users]=dan.com&o=date

 

[zomainhacks]

To make it simple EU VAT is applied only on EU private buyers, so you being a US individual don’t have to pay any VAT and no VAT will be charged to you.

 

[Leo2k]

That is not exactly how it works in this case.
The seller will pay VAT anyway because the sale amount will be added to the month's total income. So, it might not show in the invoice but the seller might have inflated the price to cover that.

VAT and Income tax are different anyway and everyone has to pay Income tax no matter where they are located (except for few countries).

In the above OP case, the price of the domain is going to be the same for everyone. Since its an auction, lets say it goes to $200, no matter which country the buyer is from, its $200. But the additional VAT will be charged to the buyer if the buyer is from EU ($200 + VAT). If buyer is from non-EU, he/she going to pay just $200. Here the seller cant inflate the final amount $200 further.
Same case with BIN / MO sales.

And, seller has to show that the revenew was from non EU buyer and that will save him from VAT charge on that transaction. But, seller anyway going to pay the income tax if he/she has to and he can't inflate the final amount specially for non EU buyers or anyone.

 

[Hypersot]

@Leo2k ,
Note that I 'agreed' with what you said earlier, as in, there is no need to explain again as I know how it works. And, yes, if a buyer is from outside EU there is no need to be concerned with VAT.

However,
since VAT is an 'extra' tax on top of the normal income tax for sellers and it gets applied *always*, some choose to add that amount to the final sales price.
That was the reason of me commenting on your 'no VAT has to be paid by anyone'. VAT on income always gets paid no matter what.

 

[Leo2k]

Note that I 'agreed' with what you said earlier, as in, there is no need to explain again as I know how it works.

I agree

gets applied *always*,

This is the part i had a different opinion.
Noted your point .

 

[pb]

The "Required To Pay VAT" note pertains to the seller, not the buyer - and the wording could be a bit better, but there's really not a good way to say this without in just a few words. Basically it means the seller is a VAT payer, which means they need to collect VAT *where applicable*. Since you're in the US, it's not applicable to you.

 

[zomainhacks]

the additional VAT will be charged to the buyer if the buyer is from EU ($200 + VAT).

this is not completely correct, VAT will be charged on EU private i.e. non business buyers, who owns a VAT number and is buying on behalf of a company/business except a few cases doesn't have to pay VAT.

VAT is intended for the final buyers, the consumers

 

[Leo2k]

except a few cases doesn't have to pay VAT.

VAT is intended for the final buyers, the consumers

Agree

 

[cooljub]

It's something akin to pickpocketing that some governments do.