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Paul
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Posts: 9298
Joined: July 20th, 2001, 3:28 pm

VAT

June 3rd, 2019, 7:54 am

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. 
 
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ISayMoo
Posts: 1988
Joined: September 30th, 2015, 8:30 pm

Re: VAT

June 3rd, 2019, 9:01 am

I seldom have problems buying stuff from outside the EU.
 
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katastrofa
Posts: 8036
Joined: August 16th, 2007, 5:36 am
Location: Alpha Centauri

Re: VAT

June 3rd, 2019, 1:54 pm

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.
 
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figaro
Posts: 149
Joined: October 3rd, 2005, 5:49 pm

Re: VAT

June 11th, 2019, 1:13 pm

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.
 
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Paul
Topic Author
Posts: 9298
Joined: July 20th, 2001, 3:28 pm

Re: VAT

June 11th, 2019, 2:54 pm

It is Evil.
 
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Cuchulainn
Posts: 59669
Joined: July 16th, 2004, 7:38 am
Location: Amsterdam
Contact:

Re: VAT

June 11th, 2019, 4:11 pm

https://ec.europa.eu/taxation_customs/e ... les-vat_en

VAT A-Z.
  • Identify which supplies are classed as digital services.
 
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SWilson
Posts: 37
Joined: February 13th, 2018, 5:27 pm

Re: VAT

June 14th, 2019, 7:50 pm

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.
 
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ISayMoo
Posts: 1988
Joined: September 30th, 2015, 8:30 pm

Re: VAT

June 23rd, 2019, 1:41 pm

As often with EU regulations, they benefit large corporations over small enterprises.
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