How to handle VAT in an offset share issue?

Denna artikel finns även på svenska.

One way to pay for consulting services is issuing shares and as payment to offset the price of the shares against the invoice instead of paying the consultant with cash. One question to resolve in that case is how to handle the value added tax, VAT (Sw. Moms). Suppose that the consulting company does work for a value of 100,000 kr and in return gets 10,000 shares at 10 kr each, for a total value of 100,000 kr. With an invoiced amount of 100,000 kr, the gross value of the invoice is 125,000 kr, of which 25,000 kr is added as VAT (since the VAT-rate is 25%). How do you handle the VAT amount?

Simple: The company pays the 25,000 kr for the VAT to the consulting company. Since the VAT is deductible, this is not a cost for the company (under the condition that the company is registered for VAT). The consulting company then pays and reports the VAT as usual. This leaves a debt of 100,000 kr, and that debt is then offset against the shares issued.

If the consulting company resides outside of Sweden, no VAT will be paid under normal circumstances. If the supplier is located within the EU, it is enough that they state your VAT number on the invoice, and they then don’t have to include VAT. A Swedish VAT-number is simply “SE” + the company’s Swedish company registration number (“organisationsnummer”) followed by “01”. Make sure to verify that the right VAT-number is used. If the supplier is located outside of the EU, no VAT is added.

If you create all the documents for the share issue in StartupTools’ platform, paying by offset is just a mouse click away. Then all the required documents are created. Try it out yourself or book a demo and we will show you how.

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