Here’s an update I’ve just received from Paul Eddington, Agel Europe Regional Manager, on two important questions: how does Agel UK deal with Executive Orders to comply with the UK Law? And what exactly is the VAT (or Value Added Tax) charged in all those European markets where Agel is already open for business?
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UK Law – Any UK order exceeding £200 must be split into two separate orders, with the first order not exceeding £200. Agel complies with this law by billing and sending a four- box order initially, waiting ten calendar days and then billing and sending the balance, if the order exceeds the £200 limit.
This raises the question, what happens with CV on a split order?
The answer is, Agel will split the CV into two parts and will record CV when the corresponding payment is collected. This means an Executive Kit order’s CV could be split over two months if an enrollment happens during the last ten days of any given month. The full CV will not be recorded in the first month. Only the volume on the first four boxes will be calculated in that month. This new Agel UK policy is effective October 1, 2006. The Fast Start Bonus is also split.
Going forward, the Agel system will recognize and show monthly CV based on orders fulfilled in that month. Commission will be calculated on total volume at the end of the month, regardless of pending orders in the UK.
VAT (or Value Added Tax) is a tax charged on all goods and services. The VAT rate is different for every European country. (See the chart below) Agel collects the appropriate tax in each market on all sales and then reports all sales to the respective European governments. Under the NFR model, Agel is responsible for collecting and paying VAT to the individual governments.
The EU has established a tax exemption status for European entities that have applied for and received a tax-exempt VAT Registration Number. If an entity has qualified for one of these EU VAT registration numbers, Agel should not charge any tax for the purchase of goods or services, and should pay that entity the VAT equivalent on their commissions.
Agel’s European Back Office System was not originally set up to handle this tax issue. It will be set up by the end of this week. While we collected VAT registration numbers during the initial enrollment process, we did not validate those numbers and subsequently on September sales everyone was charged VAT and on September Commissions, no one received VAT. Agel will correct that before the end of the month. Every Team Member in Europe who has a valid VAT Registration Number will receive a reimbursement for September that will include the VAT that was incorrectly collected plus the VAT on the commissions they were paid.
When signing up new Team Members in Europe, make sure that you include their EU VAT registration number if they have one. If they are already signed up and would like to add a VAT registration number to their account, please have them fax a copy of the EU VAT registration to Agel with their Agel ID Number. We will verify the number and then add the registration number to their account.
COUNTRY VAT RATE
Austria 10.0%
Belgium 6.0%
Czech Republic 5.0%
Denmark 25.0%
Estonia 18.0%
Finland 17.0%
Germany 7.0%
Hungary 20.0%
Ireland 21.0%
Latvia 18.0%
Lithuania 9.0%
Luxemburg 3.0%
Netherlands 6.0 %
Poland 7.0%
Portugal 5.0%
Slovakia 19.0%
Slovenia 8.5%
Spain 7.0%
Sweden 12.0%
United Kingdom 17.5%
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Your Partner in Success,
Luc Andria
Agel World Team Leader
www.WhyAgel.com/ShowMeNow
Skype: luc.andria
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