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Why do I receive a smaller amount for the same transfer than my colleague?
Why do I receive a smaller amount for the same transfer than my colleague?
John Poulis avatar
Written by John Poulis
Updated over 5 months ago

  1. If you are operating in an EU country, and provided that you are VIES registered then no VAT is charged for intra-community services (source).


    VIES stands for VAT Information Exchange System. This system simplifies VAT (Value Added Tax) procedures for businesses engaged in trading goods across EU member states.
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    Each EU member state maintains its own electronic database containing VAT registration data of businesses. This data includes the VAT identification number, business name, and address.
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    If your VAT is NOT VIES registered (you can check this here), then you will receive a smaller payment amount for the same transfer due to the VAT charged that is calculated based on the country's VAT rate. Welcome needs to declare and pay the relative charged VAT amount to Tax authorities.
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  2. If you are operating in a country outside of the EU then no tax is applicable on Welcome’s invoice.
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  3. If you are operating in the UK, tax is applicable on Welcome’s invoice as Welcome (being based in the UK) needs to declare and pay the relative charged VAT amount to Tax authorities.

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