You should not be adding VAT for European businesses

When you sell products or services in Europe to individuals, it's normal that you're adding VAT.
But when selling to registered companies, you should be selling without VAT and provide an invoice with the customer's VAT number on it. This number can be verified with a SOAP web service on the European Commission website. I can provide the details if you're interested.

But adding VAT and only offering a simple receipt without my VAT number is just not acceptable. Heck, you even have separate business and individual stores !

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  • brentybrenty

    Team Member

    @edarchis: For legal reasons, we need to charge VAT where required unless the VAT number is provided. Just shoot us an email at [email protected] and we can help! :)

  • Hi,

    is it possible that you have collected EU-VAT based on the single EU-country VAT-rates, but you don't report it to the tax authority of the single EU-countries although your clients have no chance to recollect it in their country without adequate information from your site?

    What happens to the collected money after you have booked it with eg 19% for german VAT? Would like to understand.

    Thanks! Best Regards, Jan

  • brentybrenty

    Team Member

    @JanKube: I'm not sure I understand the distinction you're trying to make, so I'll try to answer as best I can and if you still have questions please elaborate. :blush:

    There are relatively new EU rules that Canadian companies have to follow. We have a registered EU number, and are responsible for collecting and remitting VAT to the EU. Previously we were exempt from charging VAT due to the volume of sales we had in the relevant countries. The law changed and we had to begin remitting VAT when it came into effect on January 1, 2015. So that's we where we (AgileBits) and you end up in this taxation situation. It is a confusing international mix of Canadian and EU laws dictating the rules we must follow to do business between countries.

    I think maybe what I don't understand is that it sounds like you're expecting to get a refund on the tax collected, and that's not really something we can help with; you'd need to contact your own government if you believe they have levied taxes incorrectly based on your status. If you're a VAT exempt business, however, you should have a VAT number to add to your account, which we also support. Does that help?

  • Thank You for your feedback! 2 question, please:

    You are publishing your canadian tax number on Could you please add your mentioned EU-VAT-Number there? There is a VAT refund process in the EU that can just be done if your european clients have your tax number.

    Also could you please add that EU-tax-number to your invoice form as it is an important specification for the validity of invoices in most of the EU countries?

  • brentybrenty

    Team Member
    edited September 2016

    @JanKube: Thank you for bringing this up! I've passed your feedback along to the team, and we'll look into your suggestions. I'm sorry if that sounds at all dismissive. I mean it sincerely. But not living in Europe and not fully understanding all of the implications there I don't want to promise anything until it's gotten the proper attention of others. Thanks for your patience! :)

  • brentybrenty

    Team Member

    @JanKube: Just wanted to follow up on this. Though I can't say when it will be rolled out, we're working on updating the site. If you need immediate assistance getting this sorted out for your own purchase, be sure to shoot us an email at [email protected] so we can help. Thanks again for bringing this up! :)

  • Hello there, I'm a Belgium Freelancer and I would also need to get your VAT number (registered in Belgium) in order get the refund of the VAT... Companies like Dropbox, Adobe, Apple they all have a VAT registered in Belgium... Thanks to let us know - By the way your tool is awesome :)

  • brentybrenty

    Team Member

    @AtelierAimbe: Thanks for the kind words! I'm glad to hear that you're enjoying 1Password! :chuffed:

    Getting back to your request, can you help me understand where you ran into trouble? Were you unable to add your VAT number during billing setup in I thought that Belgium, being a founding member of the EU, would be covered by that, so please correct me if I'm mistaken. If you're having some other issue though, it may be best to email us directly at [email protected] as I suggested above. Either way, I look forward to hearing back from you! :)

  • smasherssmashers
    edited April 2017

    @brenty I think the issue is that to claim the VAT back you need:

    • A VAT number for their own business
    • The VAT number of Agile Bits
    • A valid invoice

    So they are asking for the 2nd thing on that list - the VAT number for AgileBits. This also lets them validate that the tax charged has been paid.

  • FrankFrank

    Team Member

    Hi @smashers - I appreciate the clarification. We can definitely email @AtelierAimbe our VAT number if he still needs it. Thank you again for the assistance :+1: Have a great day!

  • Yes please, send me your VAT number - thanks :)

  • FrankFrank

    Team Member

    Hi AtelierAimbe - Thank you for replying back :smile: I just sent you over an email with the information you requested. If you have any additional questions, let's continue the conversation via email :+1: Have a great day and I look forward to hearing back from you.

    ref: CDQ-13134-216

This discussion has been closed.