VAT Option and MOSS on Dan

[Andrea-101]

Hello guys I'm relatively new to the world of domains and I didn't understand if on the dan platform I have to choose MOSS(Calculate VAT based on country of seller) or (Calculate VAT based on country of buyer) as an option? i live in EU and i included (vat) in the prices, i know that vat i must pay it , in my country there is , and i know that in USA there is not.

 

[karmaco]

I am pretty sure you base it on the seller country but please open a chat at DAN and verify on both.

 

[VadimK]

I'd say open a chat with Dan and also open another chat with your own accountant, to see how it works in your country.

 

[Andrea-101]

i wrote to them and they replied to me that i should use (Calculate VAT based on country of seller)

 

[twiki]

Ok so no offense intended - but Dan is not qualified to offer VAT advice. Especially in the EU which is quite complicated situation.

Just some basic notes below.

If you're in the EU, and your sales total are below the 10,000EUR threshold (since beginning, grand total) then you do not need to do the MOSS thing. For sales to individuals you need to add your local seller VAT % of course and pay the VAT to your taxman.

If you are above that, then you should (theoretically) YES - apply for MOSS and calculate VAT based on country of buyer.

BUT. There is a big BUT here.

I've asked our hired law firm to study the process. They took time to study it and said, based on their interpretation we do NOT need to apply for MOSS even though we are in the EU, for a simple reason:

MOSS refers to goods and services, but a domain is neither goods nor service; as per our legal team's interpretation. It is, in fact, just a reservation of a service (a subscription), being provided by a service provider, which is the registrar.

This being said, you should check your legal team as well. Nobody here can give you an 100% valid answer. We are following our legal team's advice. If the s***t hits the fan, their job is to stand in court and defend our decisions as well.

Edit: In other words, while Dan team is (probably) not wrong (we do the same thing as they recommend, apply OUR vat locally to individual buyers in the EU), they are also not right. The only one source of right advice is your legal adviser and your accountant.