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. Funio 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, Funio 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.
Add Tax Exemption
If you have a tax number that allows you tax exemption from the VAT, you can add it to your account. Simply follow these steps:
1. Log into your Funio Hub
2. Locate and click on the Finances > Billing Preferences section
3. You will find a tax exemption field there. Simply add your number and you are done!