Invoicing questions

Hi,
how does it work when I sell my own domain name through SquadHelp?

I read your terms of service here: https://www.squadhelp.com/Terms-Of-Service

As far as I understand, SquadHelp is not the reseller of the seller owned domains, but SquadHelp is only a marketplace, right? The TOS says that the domain name buyer and the domain name seller will be in direct contract.

But then the domain name seller must issue a proper tax invoice to the buyer upon request, right? Or will SquadHelp issue the tax invoices always to the buyers?

But if SquadHelp is not a reseller, just a marketplace, then how can Squadhelp issue a tax invoice after a domain name purchase?

I am confused about this. I am just a seller, I have never bought a domain name on SquadHelp. I see the checkout form, the customer must fill in the name, address, and then will SquadHelp use that information to send a tax invoice to the buyer?

But the checkout form is incomplete. For example if the buyer is a business registered in the European Union, then that business will require a VAT invoice. But on the checkout form there is no field to enter the company name and EU VAT number. EU businesses need their EU VAT number displayed on the VAT invoice. It doesn’t matter that SquadHelp is a US company, if the buyer is located in the EU, then a VAT invoice is needed.

And if the buyer is located in the EU, and the buyer has no valid EU VAT number, then SquadHelp or the seller might have to charge EU VAT on top of the price. However there is no field on the checkout form to ask for and to validate EU VAT number, and in my seller account I see no option to charge EU VAT on top of the sale price. Which is a problem, because if the seller account is actually a business registered in the EU with a VAT number, then in some cases VAT must be charged to EU buyers, on top of the sale price.

But I still don’t know if SquadHelp is actually a reseller of our domains, or just a marketplace?

I think the best would be if SquadHelp would become the reseller in all cases. Squadhelp would buy the domain name from the seller, then immediately resell it to the end customers. In this case, the domain name seller would invoice SquadHelp, and Squadhelp would invoice the buyers, and Squadhelp would collect and remit any international taxes applicable, like sales tax or value added tax, on top of the sale price. And Squadhelp would verify EU VAT numbers upon checkout and send a proper tax/VAT invoice to every buyer.

Currently I don’t understand if I sell a domain name through SquadHelp, then should I issue a tax invoice to Squadhelp, or a tax invoice to the buyer? In a lot of countries, if a company or a sole trader sells a domain name, then that company or sole trader must issue a tax invoice to the buyer, displaying the tax rate used etc.

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You will get a tax statement from SH (1099 in the US). So no, you do not work with the buyer at all. You do not issue a tax invoice to anyone.

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Well in my case, I am a business, so I must indeed issue tax invoices after each transaction.
What I don’t understand, even after reading the TOS, is whether Squadhelp Inc. is a reseller of the domains, or just a marketplace?
For example, Ebay is just a marketplace, they are not a reseller. When a seller sells something on Ebay, then Ebay will not issue any invoices, it is the seller’s responsibility.

On Squadhelp I see that if someone buys a domain name, then Squadhelp will issue a tax invoice for that domain name purchase. But the TOS isn’t saying that Squadhelp is a reseller. So if Squadhelp isn’t a reseller, then they shouldn’t issue any invoices, right? Invoices should come directly from the domain name owners.

And someone has to pay for example the EU VAT. If the buyer is located in the EU, and the buyer doesn’t have a valid EU VAT number, then local VAT rate must be charged on top of the sale price. Suppose the buyer is from Germany, no EU VAT number supplied, then the local 19% German VAT must be charged on top of the sale price, and this VAT is payable to Germany. (domain name sale price: 100 USD, local German EU VAT. 19 USD, total price payable: 119 USD)
It doesn’t matter whether the seller is a US company, or a company in the EU, VAT must be paid after digital services sold to end customers in the EU.

For example when you register a domain name on GoDaddy, they are a US company, but if you are from the EU, they ask for your EU VAT number. If you don’t have an EU VAT number, then GoDaddy will charge the VAT rate applicable in your country, on top of the domain price.

Either Squadhelp or the seller must pay the VAT in applicable cases. If Squadhelp is just a marketplace, then the sellers must charge and pay any international taxes payable on top the sale price. If Squadhelp is a reseller, then Squadhelp must pay the taxes.

It is not just the EU VAT. For example, there is also the Australian GST on digital services. From 1st July 2017, Australia imposed 10% GST on the sale of electronic/digital services by non-resident providers to its consumers. International taxes are difficult.

That’s why I think the best would be if the TOS would clearly state that Squadhelp Inc. is in fact a domain name reseller: they buy the domain name from the marketplace sellers (immediately after the domain has been sold), then Squadhelp resells the domain name to the end customer. And then Squadhelp would issue the proper tax/VAT invoices, collect and remit any taxes payable from the buyer on top of the sale price. That would eliminate any confusion.

SH handles all of it is what I am saying. They sell it, they pay you, they handle those sales taxes and you pay income tax on your sales. I don’t know if the TOS are right or not. I just know we do not deal with any of that.

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SH is marketplace and escrow agent. When domain sells , SH acts as an escrow.

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So for seller owned domains (I am the seller who owns a domain name on Squadhelp), who is my customer when I sell my domain name on Squadhelp?

Is my customer the end user who bought my domain name?
Or is my customer Squadhelp?

If the end user is my customer, then I should issue a tax invoice to the end user. Squadhelp shouldn’t issue any invoices.

If my customer is Squadhelp, then Squadhelp issues a tax invoice to the end user, then I issue a tax invoice to Squadhelp.

I think the TOS is not clear. If the TOS says that Squadhelp is only a marketplace and I have in direct contract with my buyers, then why is Squadhelp issuing tax invoices to the end users? In this case, Squahelp shouldn’t issue any invoices to buyers.

But if Squadhelp is a reseller, then indeed they should issue invoices like they do it.
But in the TOS I cannot read that Squadhelp would be a reseller.