VAT changes for MTX Connect customers in the EU
- As of 1 January 2015, we changed the way the EU residents are charged with VAT for MTX Connect products. If you are not a resident in the EU, these changes do not apply to you.
- To make sure you are paying the correct amount of VAT, please sign in to your account and check under Billing Information that accuracy of your billing address.
What has changed?
- Starting from 1 January 2015, the EU residents are charged with VAT rate effective in the country of their residence, as opposed to a previous general VAT rate of 15% (Luxembourg).
What is the VAT rate applicable in my country?
- Current applicable VAT rates in the EU member states can be found here.
How will this change affect me?
- Service charges ("Time" bundles, "Volume" bundles, Pay As You Go): our consumer rates are VAT-exclusive (do not include any applicable taxes, duties and/or fees).
- MTX Connect Credit, Top-Ups and Auto-recharge: VAT is not charged at the moment when you buy or allocate MTX Connect Credit as well as auto-recharge top-ups. At this moment you are still charged with exactly the amount of credit you buy or allocate. VAT will be withdrawn from your account when you start to use purchased or allocated MTX Connect Credit or to use MTX Connect service or any other paid MTX Connect products.
Do you have an example?
- For a customer residing in a country with 20% VAT:
- Before 1 January, 2015 a service costs €11.50 (€10 service + €1.50 VAT at 15%).
- After 1 January, 2015, the same service costs €12 (€10 service + €2 VAT at 20%).
Do I get VAT invoices from MTX Connect?
- VAT invoices can be requested by sending email to [email protected]
- As VAT is not charged when you buy or allocate MTX Connect Credit, these transactions will not be reflected on VAT invoices.
I am a VAT-registered business in the EU. Is VAT exempted on my MTX Connect transactions?
- MTX Connect is provided for consumer use only, which means that no tax facture is applicable.
- If you want to use MTX Connect for business – please contact us [email protected]
- We will process VAT registration numbers and provide Tax Invoices from our back office.
I am a VAT-registered business in the EU. Is VAT exempted from my MTX Connect transactions?
- MTX Connect is required to comply with the EU Directive 2008/8/EC for VAT. This Directive stipulates that customers are charged with VAT rate of the EU member state of their residence.