Quote:
Originally posted by SR
I think it's all kinda stupid.
It'll be hard to get that done.
And I don't see how they are gonna check it.
I haven't charged or paid VAT so far.
The registerd and hosted in the US. The billing is done in the US. But now with these rules they want everybody to pay VAT for EU sales.
Insane.
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It may seem insane for you. But EU companies have ALWAYS been obligated to charge VAT on all sales they do, provided their sales are above a certain threshold, regardless of whether they are online or offline, so for companies in EU that aren't blatantly violating the law this is good news, because it levels the playing field for them by making it as expensive for non-EU companies to reach EU consumers as it already is for EU companies.
This is no different that any other trade protection measure.
Yes, it will suck for US and other non-EU companies that don't have expenditure inside the EU they can reclaim the VAT on, but the EU exists to further European concerns, not protect US companies from fair competition with EU based companies.
If you are based outside the EU and have significant business in the EU, look into whether there any goods you can buy at competitive rates in the EU to use to reclaim VAT, or whether it would be worth your while to set up an offshore company in Luxembourg, or similar. It has the potential to save you VAT payments, and you might be able to use it effectively for tax planning.