All EU customers need to pay VAT, unless they can provide the relevant evidence.
Relevant evidence for not paying VAT is a valid VAT number + a valid address in the same country.
When no valid evidence is given or if inconsistency occurs, VAT applies.
The applicable VAT rate will be the rate in force in the EU member state where the customer operates his holiday rental business. In most cases, this means the customer's country of residence.
Please refer to the below chart for guidance on the correct format of VAT numbers by country. Always make sure to enter your VAT number without any dashes or spaces. The two characters of the country code are already pre-selected according to your billing country and need not be entered in the blank field.
If you are unsure about entering your VAT number or need further assistance please contact us on http://help.homeaway.com/?brand=hauk
As an Electronic Service Provider we are obliged to collect VAT if (a) you operate your holiday rental business in Switzerland OR (b) you operate your holiday rental business in an EU member state AND are unable to provide a valid VAT number from this country. The country in which you operate your holiday business is not where the property is located but rather the country from which the business is administered. This will normally be your country of residence. The applicable VAT rate will be the rate in force in your EU member state or Switzerland.
As an Electronic Service Provider we are able to register under a single EU VAT registration which allows us to collect VAT on a Pan-European basis. We submit a VAT return (which does not contain customer details) & pay over VAT quarterly to the UK authorities who in turn pay the local authorities what is due to them.
Regulations - Council Implementing Regulation (EU) No 282/2011 of 15 March 2011, laying down implementing measures for Directive 2006/112/EC on the common system of value added tax.
Subsection 3, article 20, paragraph 2
The supplier shall establish that place of taxation based on information from the customer, and verify that information by normal commercial security measures such as those relating to identity or payment checks.
You can find more information here: http://www.hmrc.gov.uk/vat/index.htm?_nfpb=true&_pageLabel=pageVAT_Home