how is it possible that fiverr does not pay VAT in europe?

[Misal]

When you make a purchase from Europe they do not charge VAT, how is this possible?
All sellers submit their invoices to their tax agencies with fiverr as a customer, so the scheme would be:
customer buys from fiver, fiver buys from seller.
According to this model fiverr should be obliged to collect VAT from European customers. In fact it collects VAT from other countries except EU countries. https://www.fiverr.com/support/articles/360010453457-Taxes-on-purchases?segment=buyer

 

[bonox]

If it is B2B it could be because they claim Reverse charge the VAT on each invoice.

 

[polonieth]

They operate out of Cyprus, so there is no VAT to EU customers due to the reverse charge. It doesn't matter if B2B either, as 'services' always fall under reverse charge, regardless of VAT reg status.

 

[maxiz]

polonieth said:
They operate out of Cyprus, so there is no VAT to EU customers due to the reverse charge. It doesn't matter if B2B either, as 'services' always fall under reverse charge, regardless of VAT reg status.
Click to expand...

could you advise where can i find detailed confirmation to it, that it apply on B2C too?
thanks

 

[JustAnotherNomad]

polonieth said:
They operate out of Cyprus, so there is no VAT to EU customers due to the reverse charge. It doesn't matter if B2B either, as 'services' always fall under reverse charge, regardless of VAT reg status.
Click to expand...

I call bulls**t. Never heard of such a thing. Reverse-charged VAT applies when both the seller and the buyer have valid VAT IDs. Otherwise you have to charge VAT.

 

[daniels27]

Yes buckshot here. All.

They are not selling goods nor digital goods. They are selling manual services for which there is a threshold of scout 35k to 100k EUR per seller. Hence no VAT.

We discussed this recently
https://www.offshorecorptalk.com/th...s-in-the-eu-what-to-expect.42814/#post-284603