Ry companies / clubs and VAT

doajob · Post by **doajob** » Tue Jun 02, 2015 12:17 pm

Hi all,

If I sell to an Ry, for example most Finnish football clubs, I need to charge them VAT, but does anyone know if they can get the VAT back like a regular business or are they deemed to be a consumer and not eligible for a VAT refund.

Cheers!

**Sponsor:**

Upphew · Post by **Upphew** » Tue Jun 02, 2015 12:49 pm

doajob wrote:Hi all,

If I sell to an Ry, for example most Finnish football clubs, I need to charge them VAT, but does anyone know if they can get the VAT back like a regular business or are they deemed to be a consumer and not eligible for a VAT refund.

Cheers!

They are a consumer, unless they sell something that generates VAT.

betelgeuse · Post by **betelgeuse** » Tue Jun 02, 2015 1:08 pm

Upphew wrote:
doajob wrote:Hi all,

If I sell to an Ry, for example most Finnish football clubs, I need to charge them VAT, but does anyone know if they can get the VAT back like a regular business or are they deemed to be a consumer and not eligible for a VAT refund.

Cheers!
They are a consumer, unless they sell something that generates VAT.

Even if they sell something that generates VAT they can only deduct costs attributed to those sales.

doajob · Post by **doajob** » Tue Jun 02, 2015 1:55 pm

Ok thanks for the quick replies. Appreciated!

Perhaps if a club sponsor paid for the service, then they could get the VAT back. 24% is a real killer

Rosamunda · Post by **Rosamunda** » Tue Jun 02, 2015 10:39 pm

doajob wrote:Hi all,

If I sell to an Ry, for example most Finnish football clubs, I need to charge them VAT, but does anyone know if they can get the VAT back like a regular business or are they deemed to be a consumer and not eligible for a VAT refund.

Cheers!

It's their problem rather than yours. If you are VAT registered, you have no choice but to charge VAT on your sales.

Finding a sponsor who would buy your services and then donate them to the club is, possibly, one way around it - as long as the sponsor does not collect any financial compensation from the club. ie, it would have to be a donation. But it is still a grey area and I'm not 100% sure that Vero would approve. It might depend on what the service is, how it relates to the sponsor's line of business and the relationship between the sponsor and the club.

doajob · Post by **doajob** » Wed Jun 03, 2015 10:16 am

Thanks Rosamunda. Yes, for sure I would charge VAT, but it would make the sales process easier if they could get a refund. The same could be said for everyone I suppose!

The reason I ask is that I sell the same service throughout Europe, but to VAT registered companies / clubs and therefore the VAT is 0.

betelgeuse · Post by **betelgeuse** » Wed Jun 03, 2015 11:13 am

doajob wrote:Thanks Rosamunda. Yes, for sure I would charge VAT, but it would make the sales process easier if they could get a refund. The same could be said for everyone I suppose!

The reason I ask is that I sell the same service throughout Europe, but to VAT registered companies / clubs and therefore the VAT is 0.

The VAT is not zero for community sales. It's just the buyer that has the duty to pay it.

Rosamunda · Post by **Rosamunda** » Wed Jun 03, 2015 3:05 pm

Yes. The VAT is not zero. It is the EU transaction which is exempt for the seller. But that may change. If this new billing portal system thingy for IT services works, I imagine they will find a oh way to extend it to other sales of products and services.

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