1.6.3. Company Tax Settings

Note

Only EU-based companies will see the Tax settings tab within My company page.

Note

Only a user with the Company manager permission can initiate the VAT verification.

If you are EU-based company, you will see the third tab called Tax settings, where you can verify your VAT number against VIES database. Verifying your VAT number against VIES is optional.

On the page you can see your VAT location (Country) and your country's VAT rate. According to the EU law, when selling services, we are obliged to charge VAT at the rate of the country of the buyer.

The only exception is if the buyer / company is VAT eligible, as in this case the reverse charge - VAT exempt applies under Article 44 Directive 2006/112/ES. We are using the EU's VIES database to verify VAT-eligible companies.

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To verify your VAT number against the VIES (European VAT database) click the green Verify now button below. Verifying your VAT in VIES is free of charge. After a short time the VAT status will update.

If your VIES verification was successful the VAT rate will be shown as 0%, and your will not have VAT applied when buying units (per reverse charge of EU VAT taxation rule).

If your VIES verification fails you will continue getting your national's VAT rate charged with every purchase. Please note that even with VAT applied, you should still be able to get VAT back from your local tax authority, as this is your entry VAT.**

1.6.3.1. What can you do if VAT verification fails?

VIES verification can fail for a number of reasons. Most common problem is technical, as VIES service is sometimes not accessible. Trying again after a few minutes might solve your problem.

If it does not, verify the VIES on your own (https://ec.europa.eu/taxation_customs/vies/), by choosing your country and entering your VAT number.

If VAT number exists, but listed company details do not match your company details on the CargoX Platform we can not complete your VIES verification. Please change your company details to the official one. It should match one in VIES.

If your VAT number is not in the VIES database, or if there are no company details associated with it, we can not verify you. For some countries (Germany, Spain) this happens, because country decided it will not publicly show companies' data in VIES.

If you would like to apply to be VAT verified in our system, please provide us with the following documents:

**1) A copy of the letter of incorporation (must be in English) **

AND

2) Tax Certificate (date should be more recent than 3 months, must be in English OR translated to English by a court-appointed translator).

Please send both in a clear and readable PDF document to support@cargox.io with a email subject: VAT verification for (enter your company name).

Please note that VAT verification is OPTIONAL, as it only applies to the CargoX services invoices and VAT charged there and are not a prerequisite for other services accessible through the CargoX Platform (such as ACI filings etc). If you are a company, you will still be able to get the VAT back from your tax authority as this is your entry VAT.