5 ms·

Just out of curiosity why do you need to register a company in every country (assuming you are US based since there is no sales tax in the EU anywhere ;) ). I

Just out of curiosity why do you need to register a company in every country (assuming you are US based since there is no sales tax in the EU anywhere ;) ). I haven't done it but isn't the thing with the new VAT regulations that you can pay your taxes to one revenue service (and just register with one) and they will divide it according to your sales data (e.g. the customers country)? Or do you mean that you have to pay VAT at all if you do this? In this case your problem is more political and about the concept of VAT in general. I mean almost any EU country had it for a long time. It sucks that there are huge differences when it comes to the exact amount but the concept itself is nothing new.

mrweasel 11y ago
>I haven't done it but isn't the thing with the new VAT regulations that you can pay your taxes to one revenue service (and just register with one) and they will divide it according to your sales data I think that only works if you have limited business, but I'm not sure. I believe the problem is that we're in a country with 25% VAT, but if we want to charge our German customer only 19%, we need to do that via a German company, otherwise we would have to charge them the 25%, leaving us uncompetitive (6% is more than our entire profit for some products).
- tajen 11y ago
  I'm not sure whether you have the best information available. VAT/GST must be paid depending on the country of the customer, through a form, and doesn't require a local company. The location of the company doesn't matter and we have an EU-wide VAT identifier. http://www.happybootstrapper.com/2014/im-us-whatll-happen-just-ignore-eu-vat-changes/ http://www.happybootstrapper.com/2014/im-us-whatll-happen-ju...
  - brunodillen 11y ago
    You're talking about the new VAT rules for "Digital goods & services". Any physical product or non-automated service still falls under the old regime whereby you can sell to other European countries using the VAT rate of the country you are located, but only up till a certain treshold. After that you will need a VAT number in the other countries you are selling in.
    - mnwg 11y ago
      Yes, but a VAT number, not a company, you don't have to create 30 subsidiary companies.
- pbhjpbhj 11y ago
  >I think that only works if you have limited business // If you mean VATMOSS then you don't have to be running a Limited Company - individual sellers as of January 2015 have to now account for the tax due in the country of the buyer. This apparently applies to sellers from outside the EU too, if you're selling certain classes of goods (non-personalised intangibles) over the internet to the EU then you're supposed to retain [3 pieces of!] evidence of the locality of the purchaser and deal with that country's tax office to pay the required tax. The "MOSS" [Mini One-Stop Shop] bit is a system that individual countries in the EU use to send the payments to the countries where the tax is due. The method you mention works for tangibles or personalised goods. With VATMOSS there is no exemption for SMEs or low-revenue situations or anything.

mrweasel 11y ago

>I haven't done it but isn't the thing with the new VAT regulations that you can pay your taxes to one revenue service (and just register with one) and they will divide it according to your sales data I think that only works if you have limited business, but I'm not sure. I believe the problem is that we're in a country with 25% VAT, but if we want to charge our German customer only 19%, we need to do that via a German company, otherwise we would have to charge them the 25%, leaving us uncompetitive (6% is more than our entire profit for some products).

tajen 11y ago
I'm not sure whether you have the best information available. VAT/GST must be paid depending on the country of the customer, through a form, and doesn't require a local company. The location of the company doesn't matter and we have an EU-wide VAT identifier. http://www.happybootstrapper.com/2014/im-us-whatll-happen-just-ignore-eu-vat-changes/ http://www.happybootstrapper.com/2014/im-us-whatll-happen-ju...
- brunodillen 11y ago
  You're talking about the new VAT rules for "Digital goods & services". Any physical product or non-automated service still falls under the old regime whereby you can sell to other European countries using the VAT rate of the country you are located, but only up till a certain treshold. After that you will need a VAT number in the other countries you are selling in.
  - mnwg 11y ago
    Yes, but a VAT number, not a company, you don't have to create 30 subsidiary companies.
pbhjpbhj 11y ago
>I think that only works if you have limited business // If you mean VATMOSS then you don't have to be running a Limited Company - individual sellers as of January 2015 have to now account for the tax due in the country of the buyer. This apparently applies to sellers from outside the EU too, if you're selling certain classes of goods (non-personalised intangibles) over the internet to the EU then you're supposed to retain [3 pieces of!] evidence of the locality of the purchaser and deal with that country's tax office to pay the required tax. The "MOSS" [Mini One-Stop Shop] bit is a system that individual countries in the EU use to send the payments to the countries where the tax is due. The method you mention works for tangibles or personalised goods. With VATMOSS there is no exemption for SMEs or low-revenue situations or anything.