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VAT

Posted: June 3rd, 2019, 7:54 am
by Paul
Does everyone know about EU VAT rules? And if you run a business do you obey the rules rigorously, even if outside the EU?

For example if you are a US-based company and sell goods/services to a customer in the EU do you add the correct VAT rate for your customer's country and then send that amount to the tax people in that country? 

Obviously it's just a protection racket by the EU to pump up the prices of imports. But I'm surprised no one seems to care, either because of the effect it has on sales or because of the paperwork burden.

Or maybe non-EU companies don't bother selling to the EU, just like many non-EU websites are no longer accessible from the EU. 

Re: VAT

Posted: June 3rd, 2019, 9:01 am
by ISayMoo
I seldom have problems buying stuff from outside the EU.

Re: VAT

Posted: June 3rd, 2019, 1:54 pm
by katastrofa
I'm not sure, but I think the general rules will remain the same (e.g. if you provide services from a non-EU country to an EU business/institution, the client pays VAT in their country - like with the reverse charge between the EU countries). Only the procedures may change (e.g. of claiming the VAT refunds). CMIIW, though.

Re: VAT

Posted: June 11th, 2019, 1:13 pm
by figaro
There is a VAT threshold. If you sell below the minimum threshold in any given country in any given year, you don't care. GBP 85k or so in the UK currently.

Above the threshold, you have to register for VAT and pay it, even as a foreign entity. How they enforce it, who knows.

Re: VAT

Posted: June 11th, 2019, 2:54 pm
by Paul
It is Evil.

Re: VAT

Posted: June 11th, 2019, 4:11 pm
by Cuchulainn
https://ec.europa.eu/taxation_customs/e ... les-vat_en

VAT A-Z.
  • Identify which supplies are classed as digital services.

Re: VAT

Posted: June 14th, 2019, 7:50 pm
by SWilson
Obligations are all shifting to the sellers.   The trend is as a seller no matter where you sell, the authorities want you to collect and remit regardless of what geographical area you're doing business. This can be a major administrative burden, especially for smaller scale sellers that sell to many areas.

Re: VAT

Posted: June 23rd, 2019, 1:41 pm
by ISayMoo
As often with EU regulations, they benefit large corporations over small enterprises.

Re: VAT

Posted: July 20th, 2021, 3:35 pm
by Cuchulainn
Car dealers importing vehicles from Japan post-Brexit

https://www.rte.ie/news/2021/0720/12362 ... rs-brexit/

However, since Brexit you now have to pay the UK VAT rate of 20% on cars being imported from there, on top of the Irish VAT rate of 23%.
Car dealers here say it now works out cheaper to import European cars from Japan, who like Ireland have right-hand drive vehicles, as they are not subject to the 20% VAT charge, unlike the British cars.

Re: VAT

Posted: July 21st, 2021, 5:34 am
by bearish
Car dealers importing vehicles from Japan post-Brexit

https://www.rte.ie/news/2021/0720/12362 ... rs-brexit/

However, since Brexit you now have to pay the UK VAT rate of 20% on cars being imported from there, on top of the Irish VAT rate of 23%.
Car dealers here say it now works out cheaper to import European cars from Japan, who like Ireland have right-hand drive vehicles, as they are not subject to the 20% VAT charge, unlike the British cars.
You have to look at it from the only point of view that matters in this context. Because used luxury cars from England (of course, not made in England, that would be silly) can no longer be profitably sold to the Irish, they will now remain in England and thus push down the prices of used luxury cars there, making them affordable for the masses. And the proud brexiteers who sell them to buy new ones were never in the game for the money anyway, so they don’t much care.

Re: VAT

Posted: July 21st, 2021, 7:53 am
by Paul
Good, for once we are all agreed, VAT is stupid! Wikipedia says it is a German and French invention.

Re: VAT

Posted: August 12th, 2021, 2:43 pm
by Collector
"VAT is stupid!" or evil?

Re: VAT

Posted: August 27th, 2021, 11:35 pm
by Paul
There are 16,000 tax jurisdictions in the US (state, county, city,...). On average there are about 15 changes to the rules every week. 

Re: VAT

Posted: August 27th, 2021, 11:52 pm
by bearish
And you thought VAT was problematic…

Re: VAT

Posted: August 28th, 2021, 12:28 am
by Paul
I use VAT to mean any sales tax.

But yes, I don’t know why anyone would start a business in the US. Crazy paperwork, rabid lawyers, and no healthcare.