3 ms·
> no different to 52 different state sales tax's so... I don't know anything about the EU law we're talking about, but I do know a bit about US sales tax. Fir
by lsc 11y ago
> no different to 52 different state sales tax's
so... I don't know anything about the EU law we're talking about, but I do know a bit about US sales tax.
First, if I sell a service, not a physical product, my understanding is that I don't pay sales tax at all. Next, even if I am selling physical product, I only need to worry about sales tax in the state in which I do business. In my case, California (and maybe Washington, as I have a contractor there.)
But really, it's a non-issue, because I'm selling a service not a product.
Now, if I was selling a product, it is more complex than it sounds. Yes, as the business, I don't worry about taxes in the states where I don't have a presence, but those customers are expected to file a 'use tax' - many people don't, and some businesses take advantage of this, for example, provantage will ship my supermicro crap from California to Ohio or some other midwestern state, then back to me, so that I don't have to pay them sales tax. It's super irritating, because I pay my use tax, so it's extra accounting work for me, and it is extra shipping money and time. I usually end up getting the provantage price and sending it to my local supermicro re-seller (kingstarusa) and buying from them afte rthey price match. But the point being that the selling company doesn't worry about sales tax if they ship a physical product to a state they don't have a presence in. That's the recipient's problem to sort out (or ignore)
But that's not really the complexity of the US sales tax system. The complexity is that within the states you do business, every county has a different sales tax. And I'm supposed to figure out what county you are in and calculate your tax. (fortunately, I don't have to pay each county; I pay the state board of equalization) - it's a pain in the ass. you need to buy a special database, because counties don't line up with zipcodes always, and yadayadayada. It's doable, just not fun. But I bet that's more complex than calculating a different vat for each EU country, though actually paying each EU country might be a bigger pain in the ass. Seems like something that could be outsourced to your payment provider, though.
(note, this information about state sales tax is about a decade out of date; that's about as long as it has been since I sold physical goods. Point being that it's both more and less complex than you imply.)