Updated – September 2023
This article applies to customers of Learn2soar Music who are based within the EU. We have had to make some temporary changes to the way we operate in EU countries…
What’s Changed?
For all EU based customers – a VAT number is required at checkout. There are no exceptions. To explain further, due to changes in EU VAT rules, we are currently only allowed to sell to EU business customers (including schools) who have their own valid VAT number, which is also authorised for use in cross-border transactions. Please read on for the reasons behind this, some frequently asked questions, and possible solutions.
What happens when I place an order?
If you are located within the EU, when placing an order you will be asked to input your VAT number at checkout, which will be auto-verified. If verification fails, the transaction will be rejected. If verification is successful, you can continue your purchase, with the VAT element removed from the transaction. Your VAT number will be automatically added to your invoice/receipt, for your own accounting purposes.
PLEASE NOTE: Once payment is complete your order will automatically be placed ‘On Hold’, while we manually verify the details of the order. Once we have verified it, we will remove the ‘On Hold’ status, allowing you to access your digital publication. Our manual checks are often completed in a minute or two, however, during busy periods, or unsociable hours, there may be a slightly longer delay of several hours or more. Thank you for your patience.
EU customers without their own VAT number
If you do not have a valid VAT number of your own, then regrettably, at the moment we cannot sell to you directly. We can only sell to business customers using their own valid VAT number. Any other type of transaction is counted as consumer transaction, which we are currently forbidden from accepting. This is a situation we are not happy about, and as such we have been tirelessly working on a solution so that we can once again sell to all customers in the EU, hassle free. We are very close now to finally implementing a permanent solution on our website, hopefully within the next few months.
But schools don’t have VAT numbers! School’s aren’t businesses, they have no reason to need a VAT number.
Actually, that’s not true. There are very many schools throughout every country in the EU that do have their own VAT numbers. We have the orders to prove it! If you are unsure if your school has a VAT number or not, the first people to ask should be the treasurer or chairperson of your school’s board.
Other UK suppliers still sell to personal customers in the EU. What’s the problem with Learn2soar?
The issue is to do with our unique combinations of digital and physical products. To briefly explain, there is one EU mechanism for collecting VAT on digital sales to personal customers, and there is a completely separate EU mechanism for collecting VAT on physical sales. But frustratingly, the two can’t easily be combined! Crucially, this doesn’t affect business-to-business sales, provided that the purchasing organisation can provide a valid VAT number at the point of purchase.
We have a VAT number but the message says it can’t be used for cross-border transactions?
There are two types of EU VAT numbers: ‘Domestic’, and ‘Intra-EU’. If you have a VAT number that is for domestic use only, then unfortunately we cannot accept the order.
Can I use another company’s VAT number? I have their permission?
Having the ‘permission’ to use someone else’s VAT number does not mean you are legally entitled to use it. This is simply a form of tax fraud. It is not allowed, and could have serious repercussions for the business whose VAT number you are using. Therefore, if you place any order on our website where the billing/shipping address does not match the VAT registered address, it will most likely be cancelled.
Can I use a UK address instead?
No. If you are based in the EU, or paying for the order using an EU based bank account (paying in Euros), then you cannot try to get around the rules by entering a UK based billing or shipping address. That is again a type of tax fraud. It is not allowed. Any such order will be cancelled, and in certain circumstances may be reported as fraud, which may have repercussions for your own financial affairs.
Can I use an ‘AddressPal’ UK delivery address?
Sorry, no. ‘AddressPal’ is a service for physical deliveries only between the UK and Ireland. It cannot be used for digital sales. As all our products contain a significant digital element, this causes an issue and is therefore not allowed.
Can we give you our Company Registration Number instead of a VAT number? Or, can we give you our EORI number instead?
Sorry, no. We can only accept valid VAT numbers (that have also been authorised for cross-border transactions).
Our school’s VAT registered address is different to our school’s physical address.
We recognise that there are genuine reasons why many companies have different addresses registered for different purposes. We do! However, in the end, we are a school supplier and the plain facts are that the vast majority of VAT registered schools have their school’s physical location registered as their VAT address. If your school are one of the few exceptions, then please message us before you place your order, so that the order isn’t blocked. You may need to provide evidence, for example a page on your website that confirms the two different addresses both belong to your establishment.
Is there any legal way around this?
To return to what we said at the start, currently we can only supply within Europe on a business-to-business basis, where the company concerned has a verified VAT number. Therefore, there is no reason why a very kind local company that is associated with your school in some way, can’t buy for your school. But it has to be done correctly as a genuine business arrangement. For example, one way could be the sponsorship route… in the same way that a local company might sponsor your school’s football kit, they may also wish to sponsor your Christmas performance. For this to be above reproach and to avoid any potential block on the transaction, we strongly recommend that the order billing address, shipping address and VAT registered address would all have to be entirely in the name of the sponsoring company, with the company paying the bill out of their own business bank account. They can use the order notes section to state that they are sponsoring your school nativity and provide the contact details of your school. As for access after payment, as part of the order process, customers are required to set up a username (email) and password to be able to access the online digital publication, and the company can easily pass those login details on to your school. In return, you could possibly promise to add their company name to programme notes, or tickets, etc. (And please remember that the sponsoring local company still has to have their own VAT number which can be used for cross-border transactions).
Conclusion
As a business owner, the act of refusing any sale goes against every instinct I have. The messages we’ve received recently from many of our faithful customers across the EU who are suddenly feeling abandoned, have been genuinely upsetting. Therefore, we really have been searching hard for a permanent solution and believe we are now thankfully very close to a permanent resolution.
In the mean time, if you have any further questions about any aspect of the above information, then please feel free to contact us.
Stuart Ross – Managing Director, Learn2soar Music.