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Table of Contents:
- What is VAT?
- What is a VAT ID?
- Who has to pay VAT?
- Where does EU VAT apply?
- Does Murf have a VAT ID number?
- What if I have a VAT ID and forget to enter it?
What is VAT?
Value Added Tax (VAT) is a consumption tax that applies to most goods and services sold and used in the European Union. It is typically charged by the supplier and ultimately paid by the final consumer.
What is a VAT ID number?
A VAT identification number, also known as a VAT registration number, is a unique identifier for businesses registered for VAT.
For customers with a valid VAT number (as shown on the VIES database), Murf Inc. will not charge VAT.
Who has to pay VAT?
Typically, the supplier who sells goods or services invoices VAT and collects it from the customer. Afterward, the supplier reports and remits the collected VAT to the relevant tax authorities.
For business customers, it is recommended to ensure to check the box "I'm purchasing as a business" in order to provide your Company name and VAT Identification Number to Murf Inc.
If the VAT number is valid, then no VAT will be charged on the invoice made to you by Murf Inc. . However, if you do not have a VAT number, then VAT will be charged on the invoice made to you by Murf Inc.
It is important to note that a VAT number can only be considered valid if it is registered on the VIES database.
Murf Inc. utilizes the VIES database, which is an official database for checking the validity of VAT numbers issued by EU Member States, to validate VAT numbers provided through the Murf Inc. billing portal.
In certain EU Member States, registration of a VAT number on the VIES database is not automatic. Therefore, it may be necessary for you to apply to your relevant tax authority to have your VAT number included on the VIES database.
Where does EU VAT apply?
EU VAT applies to EU Member States.
Does Murf have a VAT ID number?
Murf Inc. is not registered for VAT in every EU Member State. However, the company is registered for VAT through the non-Union Mini One Stop Shop (‘MOSS’) in the EU.
Murf has selected its country of identification for MOSS purposes as the Ireland.
The non-Union MOSS scheme is a simplified option for taxable individuals outside of the EU to collect and remit VAT on telecommunications and/or electronically supplied services provided to non-business customers in EU Member States.
The MOSS scheme offers a simplified option for suppliers of telecommunications and/or electronically supplied services to non-business customers to collect and remit VAT without having to register individually in each EU Member State.
What if I have a VAT ID and forget to enter it?
If you happen to forget to enter your VAT number, don't worry. You can add it at any time. However, if you miss entering it before the next invoice, VAT will be charged until a valid VAT number (as shown on the VIES database) is entered.
To avoid unnecessary charges, include your VAT number before the next invoice is issued.
If you have provided a valid VAT number after invoices have already been issued, please contact support to request a refund on the tax amount.
Please note that tax refunds are only applicable for invoices generated within the current calendar year quarter. For instance, if your invoice was created in March but you request a refund in May, the tax will not be eligible for a refund.
Disclaimer
Every customer is unique, and so are their specific tax circumstances. The above-stated information should not be considered tax advice but rather a general overview of relevant tax rules. Murf cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.