Below are the answers to our most frequently asked questions about European Union Value Added Tax.
- What is European Union Value Added Tax (VAT)?
- Who may be charged VAT?
- Enom is a U.S. company. Why are you collecting VAT?
- Why are we required to charge VAT on these supplies, since they’re made by Enom, in the US, which is outside the scope of VAT?
- My VAT number is not being accepted. Why is this?
What is European Union Value Added Tax (VAT)?
VAT (Value Added Tax) is a tax on consumer spending within the territory of a European Union (EU) Member State. VAT is not included in prices displayed on Enom’s site. When applicable, VAT is charged separately and will be itemized on invoices and billing information. VATs are NOT Refundable.
Who may be charged VAT?
As a non-EU supplier of domain and web hosting services to customers in the European Union (EU), Enom is required to comply with the European VAT (Value Added Tax) regulations and charge VAT to non-business customers located in the EU.
Customers categorized as Business or Charity users in the EU may be required to self-account for VAT. For Enom to determine if you may fall into this category and not charge you VAT, you must supply your VAT number. If you are not familiar with the VAT self-accounting rules in your country, please contact your accountant or professional adviser for more information.
Enom is a U.S. company. Why are you collecting VAT?
As a non-EU supplier of electronically supplied services (domain registrations, SSL certs, etc.) we are required to account for VAT on these services provided to EU non-business customers. We are required to comply with Council Directive 2006/112/EC on the common system of value added tax.
We have opted to register for VAT under the special arrangement for non-EU suppliers of electronic services, also known as the Mini One-Stop Shop (MOSS), in accordance with Article 357 to 369 of the above EC Directive rather than register for VAT in each EU member state individually. Therefore, we are collecting VAT and will be paying the EU, via Ireland where we are registered, on a quarterly basis.
Because Enom is in the US, are the charges not outside the scope of VAT?
This is incorrect. We are a registered company for VAT under MOSS in Ireland as a non-EU supplier of electronic services, and have our own VAT Number. Our number is EU372003356. We are collecting VAT in Business to Customer sales only. All customers supplying a valid VAT number will not be charged VAT. Instead they’ll self report under the reverse-charge scheme for EU VAT.
There is no VAT number on the invoice, how can you charge the VAT?
The VAT number can be found in the upper left hand corner of the invoice.
We are obligated to collect VAT, and business customers are still required to comply with EU VAT requirements for reverse-charge.
Our EU VAT Number: EU372003356
My VAT number is not being accepted. Why is this?
The EU has a VAT validator tool available at: http://ec.europa.eu/taxation_customs/vies/vatRequest.html.
Enom utilizes this tool to verify the validity of the VAT number submitted. If the VAT number you have supplied is returned as Invalid or Incorrect, please use the tool at the link above to verify your VAT number is correct.
Please note that in order for your VAT number to work, the VAT number must be an EU VAT. In-country only VAT numbers, such as those used within your country, may not be valid. You will need to apply for an EU VAT.
If you do not have an EU VAT number but are eligible for VAT exemption, you should be able to file for a refund.