As of January 1, 2015, iWeb will be invoicing accounts according to the Value Added Tax (VAT) for services provided to customers in the European Union. Please continue reading for detailed information for businesses/consumers.
Business to Business transactions (B2B)
Under article 44 EU VAT Directive 2006/112/EC that deals with the place of supply of services, electronic services are deemed to be taxable where the Business customer belongs. Under article 196 EU VAT Directive, the VAT will be levied from the customer, based on the reverse charge mechanism. iWeb will request a valid VAT number in one of the EU member states in order not to invoice the VAT to the Business customer. If such VAT number is not provided or is invalid, iWeb will invoice the VAT of the country where the Business customer belongs.
Business to Consumers transactions (B2C)
The place of supply of electronic services to a non-taxable person (private individual, without a valid VAT number) shall be the place where that person is established, has his permanent address or usually resides. This is specifically provided for under Section 34(l) VAT Consolidation Act 2010 which is transposed from Article 58 of the VAT Directive.
Please contact our billing department to provide us with your valid VAT number, if applicable.
You can also contact us if you have further questions about this matter or visit http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/telecom/explanatory_notes_2015_en.pdf.