Easy 0 VAT Jurisdiction Needed

Your problem is that if you, as a customer, do not provide a VAT number, the store must charge local VAT—and if it's outside the EU, they should not charge VAT at all. However, the issue here is that their system cannot handle this, and you end up being charged full VAT—this only applies if you are purchasing as a business.

Luxembourg and Switzerland are among the one with the lowest tax rates in Europe.

i dont get the issue, if fb charges you 20% vat then you claim it back as input tax so net is zero.

or if facebooks bills you from country A, just incorporate in country B inside EU then its also zero and its just paperwork for a vat return

Allenk said:

I want to run some online ads, and if I select the UK, or any other country, they're charging a 20% VAT on the ad spend.

Click to expand...

Can you maybe explain what you want to advertise? I am asking because in most of the cases, you either have to pay VAT on your sales in UK or you have no UK sales in which case you can register for VAT and claim back all input VAT.

ShillGates said:

i dont get the issue, if fb charges you 20% vat then you claim it back as input tax so net is zero.
or if facebooks bills you from country A, just incorporate in country B inside EU then its also zero and its just paperwork for a vat return

Click to expand...

Yes, or you just use a personal address in Hong Kong for the ad account and the problem is solved.

ShillGates said:

i dont get the issue, if fb charges you 20% vat then you claim it back as input tax so net is zero.

or if facebooks bills you from country A, just incorporate in country B inside EU then its also zero and its just paperwork for a vat return

Click to expand...

I totally agree with you, not sure what OP try to achieve.

How would you invoice people with 0 VAT if you run a business in Europe, I say impossible!

clemens said:

How would you invoice people with 0 VAT if you run a business in Europe, I say impossible!

Click to expand...

His problem is not the invoicing. His problem is that Google charges him VAT when he is using an EU company. If he spends 1000 on ads, he needs to pay 1200 with his UK company. He wants to save the 200. So far so good, but if he just registers for VAT, he can completely reclaim the VAT. However, he may be under the sales threshold and we are talking about saving 200 GBP per year only.

Hence, either he did not understand the concept of VAT or he understands it very, very well and is beating the system one way or the other. We do not know. As there are several ways to beat the system, we can only try to help him:
- if he is a position where he does not need an invoice to lower the net profit, he can run the ads on somebody else's company or a private address in Hong Kong, etv.
- if he is does need the invoice for deduction of business expenses (only CIT, not VAT), he will have no choice than to incorporate outside EU, CH, etc. Hong Kong, US, etc. would all work.

daniels27 said:

Hence, either he did not understand the concept of VAT or he understands it very, very well and is beating the system one way or the other.

Click to expand...

I think this is the answer to the question.