I'm managing a french company where the VAT must be applied, and I am stumbling upon a problem that annoys me.
There is a simple form to know if the VAT must be applied or not (please tell me in case I'm wrong on that) :
Seller EU (me) => Outside EU : no VAT Inside EU : Customer not a business : apply VAT Customer's a business : apply VAT ? <== It's my problem
Ok. (This comes from an article from the TheNextWeb which is linked below)
When I entered my VAT Number, they removed the tax (from 10$+20% to only 10$).
BUT, the problem is the following :
I asked my accountant if, when making an invoice from a French company to an other French company, I should remove the 20% tax. She said no. I must indicate my VAT number AND the VAT number of the client, and that's it.
The 20% tax still applies and the client must do it's paper work to get back the tax he paid from the state (France), not the issuing company.
So, as far as I understand, Quaderno is not right for France as I should still pay 12$ (10$ + 20%).
But the explanation given by TheNextWeb and how Quaderno works raise me an other question :
They both remove the VAT tax when the company enters it's VAT number, which leads me to believe that in some EU countries, if the VAT number is given, the service must remove the tax from the invoice.
Is this right ? In that case, in which countries we must remove the tax when invoicing the client, and in which countries (like France) we still must keep it ?
Thank you for your help and feel free to ask for more details if it isn't the case.