Does Openprovider charge VAT when purchasing products?
It depends on your location and if you entered a VAT number in your account, if VAT charged or not.
Here is a short overview with the rules which are followed:
- Within the Netherlands: VAT is always charged
- Within the EU, without valid VAT number: VAT is charged
- Within the EU, with valid VAT number: No VAT is charged
- Outside the EU: No VAT is charged
Openprovider will periodically check the VAT numbers in our systems and the European Database and notify the reseller if the number is no longer valid. If the number is no longer valid, it may cause VAT to be charged. As long as the VAT number is valid, you have nothing to worry about.
After Brexit, UK consumers are still charged VAT, UK businesses are not charged VAT when they have their valid VAT number added in their account.
The VAT number can be entered on this page in the RCP:
How to check if VAT is added when purchasing products
When ordering a product, one might see the price "including VAT"
This does not mean necessarily that VAT is being charged.
- If the total price and VAT-included prices are the same, that means that no VAT is charged.
- If there is a difference in both prices, VAT is charged.
See examples below of a Plesk order where no VAT is added vs 21% VAT addition.
Changes in VAT liability
If your VAT liability changes (for example if you move to another country or because you start without VAT number and add a VAT number after a few months of doing business with Openprovider), we might need to make corrections.
Your VAT liability is always defined at the moment of invoicing (the first day of every month). The full invoice will be created with that VAT liability status, even if for some transactions the VAT status was different.
Example: your VAT liability changes from 21% to 0% because you added your VAT number on the 10th of the month. Your account will show the following:
- during the month, all transactions until the 10th include VAT (e.g. a €10,00 domain is charged €12,10)
- during the month, all transactions from the 10th do not include VAT (e.g. a €10,00 domain is charged €10,00)
- on the 1st day of the next month, we find your new VAT liability status (0% VAT)
- all transactions for that invoice that initially were charged 21% VAT are credited and re-created with 0% VAT (on their original date)
- your invoice will include all transactions, and you will be charged 0% VAT
Your invoice lines will show the following in your control panel (assuming this example is about the month of May):
For the last transaction, no correction is required because it's already charged with the right VAT liability.