My accountant rejects Cyprus brands invoices?

[sportnbetting]

Hi.

I have some difficulties with invoicing the programs from Cyprus.

They often only sends company name, address and registration number of the company.

Every quarter i sends these invoices to my accountant and she is returning them and says that the reg. no is not valid in the EU intercommunity system, and i have to get their CIF (as i believe if the VAT.. i dont know).

I then asked 2 of the brands i work with for it, and they say they dont have any VAT numbers for their companys in Cyprus. A third brand was from Gibraltar telling me the same - company yes, VAT no.

When i tell my accountant that, she says i have to add VAT % to the invoices then, (not for the brands to pay, but for me to submit to taxations)

So here is my questions:

- How do you handle invoices to cyprus based brands?

- If its the case that i will cost me VAT, to recieve payments to my bank directly from these brands, would it then be legal to ask the brands to pay to skrill, withdraw money from skrill to my bank - and then "invoice skrill" the money. I would never send a invoice to skrill, but i got the money on the bank from them, so it might makes sense to send a invoice with their name to my external accountant.. If its totally illegal, i ofc would stay away from that.. but its just one of the ideas i got in frustration here the last hour

[Sherlock]

I only know that companies (small, at least in some EU countries) do not have to pay VAT. But if they make even one smallest business over the borders within EU they must pay the VAT. Not that it helps you.

I solve the problem that I do not have a company and residence in EU.

I do not understand how you want to "invoice skrill". I never heard that someone is invoicing a bank (except a server guy who is renting to the bank hardware and services).

[sportnbetting]

I dont have a company either, but im working as a "one-man business" (dont know what to call it in english) but i still need to invoice them with no VAT.

My accountant still wants to verify the companys by this EU VIES;
VIES (europa.eu)
The companyes just dont figure in that system, because they have no VAT. So now she requires that i put VAT on the invoices after i was paid, and then she submits 21% VAT + the amount i was paid from the brands.. thats just crazy, that i have to declare more income, than i was paid.

The invoice skrill part.. is just i recieve the payment from Skrill (Paysafe Group) and i send a invoice to my accountant there i replace the brand with skrill.
Cause from my accountants perspecive she would never know either way.. I got the money from Paysafe, so it would make sense for her to see a invoice to Paysafe. I would of course never send that invoice to paysafe.. its just as a invoice to submit for taxations- Its maybe just a crazy idea, and might not be legal.. but its a huge frustration for me.

[nwalker]

Are you VAT registered yourself? If you're not then you don't have to collect VAT and you won't be able to reclaim VAT.

As you are invoicing the company you decide whether to charge VAT and you can only do that if you're registered for VAT. I have a UK LTD company and I'm not registered for VAT so I don't invoice for VAT when i send my invoices to companies. When i get charged VAT for products or services I buy and they have VAT included I have to pay it, but can't claim the VAT back, because I'm not VAT registered.

Google CIF number, it's nothing to do with VAT, it's more to do with Bank Account information, Anyway your accountant should be able to tell you what it is and what to ask the affiliate program for.

[tufty]

If you are receiving funds from gibraltar and you are vat registered, you don't collect VAT because gibraltar is not part of the EU (or the UK) VAT system. It is treated as "outside scope" of vat in all circumstances. Your accountant should know that and it is a big red flag if they think you should add vat to an invoice for a company in gibraltar. Sounds like they are clueless - is this actually a qualified accountant or some clueless bookkeeper?
I am certain of the situation regarding Gibraltar.

I am not sure about Cyprus. A quick google search suggests they are in the EU VAT system. It depends what country you are in, but if they are in the EU system and you are in the EU system, then it is "reverse charge" so VAT doesn't really apply either, though it should be accounted for on the VAT return (it goes in one box and out the other).

I suggest you talk to a different VAT expert. I really think your current one has no clue.

P.S: My advice assumes you ARE vat registered in an EU country. As previous poster has stated, if you are not registered for VAT then none of this applies. You can't add VAT to anything, that would be criminal fraud!

[Sherlock]

As I understand it: Everyone who receives over the border payments must be VAT registered (probably not in Gibraltar). Then at least in some countries, those payments belong to special designated tax office.

[tufty]

The rules vary by country for registration. In uk if your annual vat-able sales is under £85k a year you don’t register. If it is over then you must register for vat. That is the sole criteria I believe. I think in other countries this level is lower. I deal with a writer in Spain who is registered so the rules there must include people that they wouldn’t in uk, despite both countries (until jan 1) being in the same eu vat system.

There are eu located territories that are not in the vat system, like Gibraltar, some of the Channel Islands. In fact nearly all uk sports affiliate programs are via Alderney or more commonly Gibraltar, so it is all ‘outside scope’. I don’t promote any anymore that operate via the uk and will add vat to invoices. It is all outside scope and so vat does not apply: this includes willhill, bet365, betfred, betvictor, the gvc brands (don’t promote anymore), etc etc. Paddy power/ betfair is reverse charge because they are Ireland. So still no net vat charge. Though for uk, the situation may be a bit different now as on jan 1 ceased to be in eu vat system. I think maybe the reverse charge situations (like paddy power betfair and maybe still kindred) could become outside scope for uk vat registered affiliates as uk is now a ‘third country’ to the eu, but I am not certain of that change - certainly it can’t be reverse charge anymore. They would be reverse charge if you were located in an eu country though.

it is very hard in this business for vat to affect the bottom line. If the OP is located in the eu (not uk) and is vat registered it will be reverse charge or outside scope for everything. So vat will not affect the bottom line figure at all. The only exception would be if the firm he is promoting is vat registered in the exact same country he is vat registered in. Only then will vat be added to invoices. At least that is how it has always been for me with a uk vat number and the vat office took a closer look at some of my records recently and never raised any issue.