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Can you elaborate on the structure the 4 london based startups use? My understanding is that selling digital products within the EU to other EU countries is an
by ac2u 10y ago
Can you elaborate on the structure the 4 london based startups use?
My understanding is that selling digital products within the EU to other EU countries is annoying. The main reason I hear is having to collect VAT for each B2B transaction at the rate of the country you're selling to.
When it comes time to settle the taxes it is handled in an aggregated manner with one filing under a VATMOSS scheme, which distributes the collected VAT to the member states in one go. This attempt at simplification seems to have backfired with many calling it 'VATMESS'.
However, from what I read online, US based companies selling into the EU technically have to charge this too (although they can aggregate it as well under a 'Non-Union' VATMOSS filing).
With the above in mind, is the structure you talk about in place for other reasons than VAT?