Quote:
Originally Posted by adultmobile
In fact we need to divide EU and non EU sales by hand from the different stats of the different billers we use, and this cost lots of hours and accountant to us. Then we pay this VAT. Some billers (especially EU ones) already report separately the VAT sales, this saves us a lot of time.
PS: We pay all the VAT we should since day 1 which is lots of years ago. That's lots of money (like we earn 10% less than we would...), but, we got tax inspections (the netherlands company) and they made us compliments for how we accounted it so well. That's something!
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I'm just thinking out loud here but this VAT issue is really a sour topic.
But doesn't this VAT include taxation on Electronic Services which is why many believe they may fall under the VAT requirement? You can define electronic services any which way you want and their is mostly "acceptable" definitions to the term. But what you will find when you go looking for the definition is that part of it will include verbage that Electronic Services must, in part, include mostly an automated type system.
You can argue that cam performers do NOT fall under anything automated as the success of the chat session relies entirely on human interaction and so should the sale. Human Interaction type sales are exempt from this VAT and therefore any purchase of tokens for the purpose of chat should be as well.
Now, of course the EU countries triple dipping for this VAT will say otherwise, but does it really matter? If they were ever to come after you for the VAT money they would have to convince a judge in your area to impose any penalties. Any lawyer could argue the basis for not paying VAT as it is entirely based upon the 100% need for human interaction.
Just my thinking.
"This definition contains two main components:
It is a service capable of delivery from a remote location that is actually supplied over the internet or other electronic network and that cannot be obtained without the use of information technology.
The supply of the service must essentially be automated (involve a minimum of human intervention)."