FAQ
VAT Issues
Why is VAT charged?
Let SWREG handle your VAT issues
Why was my customer charged VAT when under £18 VAT payment threshold?
How do customers place an order without getting charged VAT?
What if the customer is VAT exempt, but didn't enter their VAT number?
The customer has sent me a huge JPEG file to claim back VAT - what should I do?
What do I do about VAT.
How do customers avoid being charged VAT when hard goods are shipped?
ALL TECHNICAL QUERIES PLEASE use the message link in your control panel or if not a vendor yet please CLICK HERE
Definition: Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services.
VAT Rates: Each member state has its own VAT law, and the most reliable source of information would be that countryxs taxing authority.
Under OECD rules the European Union has been the first block to require that VAT be charged when sales are made to its residents. EU residents are used to VAT being charged and EU businesses are likely to obtain a VAT refund from their taxing authority. VAT is not charged to customers outside the EU.x Since SWREG is owned by a US based company that has offices within the United Kingdom, we are required to charge VAT tax to EU residents.
Let SWREG handle your VAT issues - just concentrate on your program!
According to non-EU based VAT rules, we are not required to charge vendors for services you "purchase" from us.
Why was my customer charged VAT when his keycode cost him less than the £18 VAT payment threshold on imported goods?
Software supplied electronically is now considered a service and does not benefit from the VAT threshold allowed on imported goods.
How do customers place an order without getting charged VAT?
If the customer can provide a valid VAT number in the VAT ID field, VAT will not be applied to the order.
What if the customer is VAT exempt, but didn't enter their VAT number?
If the customer is VAT exempt, but did not enter a valid VAT number or does not have a VAT number, they will need to claim reimbursement through their local taxing authority.x We are unable to refund VAT tax.
The customer has sent me a huge JPEG file to claim back VAT - what should I do?
Please tell the customer to follow the instructions on their receipt and request reimbursement from their taxing authority. No other method will be acceptable.
In theory nothing regarding VAT to charged to buyers. We charge them VAT and we account for the VAT to Customs. If you are linking using Advanced Level please read the special instructions regarding VAT issues at http://swreg.org/services_setup.html
How do I prevent my customers from being charged VAT again at point of entry when hard goods are shipped?
We suggest you print out a formatted invoice and either place it in the package or better still in a clear envelope on the outside of the package. You can print the invoice from a link in your sales notification e-mailer from the Order page in your control panel (pull up the order and the link will be on the order description page). It is highly unlikely VAT will be charged again to the customer. In fact a side benefit may be that the customer will save any VAT collection fees raised by the postal service.