3 ms·

yes, it is much more complicated in Europe, but you can rent software that handles most of it (and you should). If you cater to companies, it is easier. You as

yes, it is much more complicated in Europe, but you can rent software that handles most of it (and you should). If you cater to companies, it is easier. You ask for the VAT number and only if the company is from your own country, you add the VAT, otherwise its 0%. If you cater to individuals, you need to use two different mechanisms to identify where the user is from (IP Address + Geo location and another one) and store this information, then you need to charge the VAT from that country and you need to signup for the EU Mini One Stop Shop (MoSS) with your local tax office, report your european VAT earnings quarterly. Selling to a customer (business or individual) from outside the EU you can charge 0% VAT, so that is easy as well. I recommend that you use either Recurly or Quaderno in combination with Stripe, because they generate the invoices for you and handle the VAT calculation perfectly. I don't know about other countries than Germany (were we are located), but we also have to submit monthly VAT report to our tax office, all in all we pay our tax attorney 400-500 Euros per month, plus another 1000 for the yearly report. Maybe other EU countries allow startups to report quarterly or yearly? Idk.

Silhouette 9y ago
Maybe other EU countries allow startups to report quarterly or yearly? In the UK it's usually quarterly, but you have to file separate returns and make separate payments for VAT MOSS and domestic (UK) VAT, which might be out of phase unless your VAT quarters happen to fall on calendar quarters anyway.
jacquesm 9y ago
> You ask for the VAT number and only if the company is from your own country, you add the VAT, otherwise its 0%. No, it is not 0%, it is VAT deferred.
- GordonS 9y ago
  I think the correct term you are looking for is "zero rated". I mean to help others with their Googling, I'm not trying to be overly pedantic :)
  - jacquesm 9y ago
    I appreciate you are trying to help but 0% vat is a totally different thing than deferred vat and if you would accidentally use the term 0% on your invoices rather than the correct term it would cost you dearly by the time you discovered your mistake (most likely during a tax audit).
    - GordonS 9y ago
      I was incorrect in saying "zero rated" - the term I should have used was "out of scope". B2B sales between EU nations are out of the scope of VAT in the supplier's country, and in scope in the customer's country (the customer must account for VAT using the reverse-charging rules)

Silhouette 9y ago

Maybe other EU countries allow startups to report quarterly or yearly? In the UK it's usually quarterly, but you have to file separate returns and make separate payments for VAT MOSS and domestic (UK) VAT, which might be out of phase unless your VAT quarters happen to fall on calendar quarters anyway.

jacquesm 9y ago

> You ask for the VAT number and only if the company is from your own country, you add the VAT, otherwise its 0%. No, it is not 0%, it is VAT deferred.

GordonS 9y ago
I think the correct term you are looking for is "zero rated". I mean to help others with their Googling, I'm not trying to be overly pedantic :)
- jacquesm 9y ago
  I appreciate you are trying to help but 0% vat is a totally different thing than deferred vat and if you would accidentally use the term 0% on your invoices rather than the correct term it would cost you dearly by the time you discovered your mistake (most likely during a tax audit).
  - GordonS 9y ago
    I was incorrect in saying "zero rated" - the term I should have used was "out of scope". B2B sales between EU nations are out of the scope of VAT in the supplier's country, and in scope in the customer's country (the customer must account for VAT using the reverse-charging rules)