In 2010 some tax rules have changed. This means VAT needs to be charged over service provided by EGARA. Membership is regarded a service, so contribution is income for EGARA and thus VAT must be paid. If members have a VAT registration, no VAT needs to be paid.
EGARA needs to know the VAT numbers of her members. If not, VAT will be included in the invoice. Most members have responded and numbers are known. If organisations do not have VAT numbers, they need to pay 19% VAT over their contribution, otherwise EGARA is paying instead. This would mean 19% less income on the budget.
Without a VAT number:
– Associations will receive an invoice from EGARA for 19% VAT over 2010 in December;
– Associations will receive an invoice for contribution including 19% VAT over 2011.
We are very sorry, but it’s all EU rules. The only ones that do not have to bother are non EU members like Switzerland and Norway. If associations feel more comfortable without a VAT number, they are free in their choice so far, but the consequence is the VAT needs to be compensated.
We hope to have informed you well. If there are any questions, please let us know.