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Author Topic: EU Contributors: How do you handle VAT at Alamy?  (Read 2886 times)

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« on: February 04, 2016, 16:16 »
0
As a EU-based contributor who is liable to pay VAT, I have to follow EU VAT regulations. For EU cross-border b2b license sales -- i.e. when I receive money from an agency that is in another EU member state -- that means that I need to report the amounts to my local tax authority together with the buyer's EU VAT ID. The idea is that the buyer has to pay his local VAT rates on the transaction (so-called "reverse charge"). This has not been a problem with most agencies. AGE Fotostock for example is very good at following these rules.

Not Alamy. They allow me to register for VAT payments only if I have a UK ID, which I do not. When I ask them what to do, they say "no need to worry about VAT if you're from another member state.", which is wrong.

Has anybody else encountered this problem? And if so, how did you solve it? It is my duty to report the sale here at home and to give them Alamy's VAT ID with the report, but I have a feeling that Alamy won't be too amused if I do that and their own tax man comes after them for not having paid UK VAT on the sale...
« Last Edit: February 04, 2016, 16:18 by MarcvsTvllivs »


Tror

« Reply #1 on: February 05, 2016, 04:40 »
+2
As a EU-based contributor who is liable to pay VAT, I have to follow EU VAT regulations. For EU cross-border b2b license sales -- i.e. when I receive money from an agency that is in another EU member state -- that means that I need to report the amounts to my local tax authority together with the buyer's EU VAT ID. The idea is that the buyer has to pay his local VAT rates on the transaction (so-called "reverse charge"). This has not been a problem with most agencies. AGE Fotostock for example is very good at following these rules.

Not Alamy. They allow me to register for VAT payments only if I have a UK ID, which I do not. When I ask them what to do, they say "no need to worry about VAT if you're from another member state.", which is wrong.

Has anybody else encountered this problem? And if so, how did you solve it? It is my duty to report the sale here at home and to give them Alamy's VAT ID with the report, but I have a feeling that Alamy won't be too amused if I do that and their own tax man comes after them for not having paid UK VAT on the sale...


Maybe you overthink a little :-) You actually have nothing to worry!

Yes, you have to file a reverse charge VAT return with them, but its a "0" declaration = thats the defintion of the reverse charge. Only the final consumer has to pay VAT and you can be safe that Alamy follows the rules. And f not its not your problem. The reverse charge mechanism in the EU has no financial consequences, it allow the member states just to monitor the transactions and B2B (you doing business with Alamy) is exempt from VAT payments.

In short:
Here you find the VAT number of Alamy:
http://www.alamy.com/contactus/uk.asp
You copy-paste it to your invoice, let you accountant do the reverse charge for that number if you receive a payment and you are done. No need to get even in touch with them.

Have a nice day :-)

« Reply #2 on: February 05, 2016, 06:43 »
0
As a EU-based contributor who is liable to pay VAT, I have to follow EU VAT regulations. For EU cross-border b2b license sales -- i.e. when I receive money from an agency that is in another EU member state -- that means that I need to report the amounts to my local tax authority together with the buyer's EU VAT ID. The idea is that the buyer has to pay his local VAT rates on the transaction (so-called "reverse charge"). This has not been a problem with most agencies. AGE Fotostock for example is very good at following these rules.

Not Alamy. They allow me to register for VAT payments only if I have a UK ID, which I do not. When I ask them what to do, they say "no need to worry about VAT if you're from another member state.", which is wrong.

Has anybody else encountered this problem? And if so, how did you solve it? It is my duty to report the sale here at home and to give them Alamy's VAT ID with the report, but I have a feeling that Alamy won't be too amused if I do that and their own tax man comes after them for not having paid UK VAT on the sale...


Maybe you overthink a little :-) You actually have nothing to worry!

Yes, you have to file a reverse charge VAT return with them, but its a "0" declaration = thats the defintion of the reverse charge. Only the final consumer has to pay VAT and you can be safe that Alamy follows the rules. And f not its not your problem. The reverse charge mechanism in the EU has no financial consequences, it allow the member states just to monitor the transactions and B2B (you doing business with Alamy) is exempt from VAT payments.

In short:
Here you find the VAT number of Alamy:
http://www.alamy.com/contactus/uk.asp
You copy-paste it to your invoice, let you accountant do the reverse charge for that number if you receive a payment and you are done. No need to get even in touch with them.

Have a nice day :-)


So that's what you do then? Just report the reverse charge? It's what I was going to do, but my accountant told me not to because Alamy's invoices are insufficient for our revenue agencies (and it's not like we contributors invoice Alamy, Alamy just issues a credit note) and the ensuing chaos if they ever audited me would probably not be worth it.

But if other contributors are doing this I guess I'll just do it too. Thanks!

« Reply #3 on: February 05, 2016, 08:17 »
+1
Not Alamy. They allow me to register for VAT payments only if I have a UK ID, which I do not. When I ask them what to do, they say "no need to worry about VAT if you're from another member state.", which is wrong.

Why should they register you for VAT charges when you explain yourself that the reverse charge mechanism allows you to skip charging VAT for international transactions?

Alamy this is totally correct. VAT only is an issue if you and the buyer/agency are within the same country because in those cases you have to charge country-internal VAT. I do get a VAT report and VAT added from my German agencies correctly. But I don't (and don't need that) for agencies based in other EU countries (nor overseas, of course).

Across borders, you do NOT charge the VAT, that's the idea of the reverse charge - unless the buyer is a private person. You just have to make sure that your business partner has a valid EU VAT ID to skip charging the VAT. Alamy is responsible for charging and reporting their VAT to the UK tax service but that doesn't affect you or your business at all.

« Reply #4 on: February 05, 2016, 12:10 »
+1
Not Alamy. They allow me to register for VAT payments only if I have a UK ID, which I do not. When I ask them what to do, they say "no need to worry about VAT if you're from another member state.", which is wrong.

Why should they register you for VAT charges when you explain yourself that the reverse charge mechanism allows you to skip charging VAT for international transactions?

Alamy this is totally correct. VAT only is an issue if you and the buyer/agency are within the same country because in those cases you have to charge country-internal VAT. I do get a VAT report and VAT added from my German agencies correctly. But I don't (and don't need that) for agencies based in other EU countries (nor overseas, of course).

Across borders, you do NOT charge the VAT, that's the idea of the reverse charge - unless the buyer is a private person. You just have to make sure that your business partner has a valid EU VAT ID to skip charging the VAT. Alamy is responsible for charging and reporting their VAT to the UK tax service but that doesn't affect you or your business at all.

You're right, I don't have to pay VAT under reverse charge, but I have to report it. And for that, if I ever get audited, I need a valid invoice (or credit note if issued by Alamy) that has both my and Alamy's VAT ID on it. That's what I don't have, and that's why I am worried. But there isn't really anything I can do besides not get audited.

« Reply #5 on: February 06, 2016, 04:09 »
0
You're right, I don't have to pay VAT under reverse charge, but I have to report it. And for that, if I ever get audited, I need a valid invoice (or credit note if issued by Alamy) that has both my and Alamy's VAT ID on it. That's what I don't have, and that's why I am worried. But there isn't really anything I can do besides not get audited.

So what do you do if you have a customer from a different EU country licensing an image directly? You write an invoice on your computer and make a copy of that for your own accounting, don't you? You don't expect the customer to write that invoice for you, do you?

Why don't you do the same for Alamy then? And put the credit note as an addendum to it.


 

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