4 ms·
The VAT MOSS scheme we're talking about (currently) only applies to digital services, not physical products. The problems you mentioned don't apply in this cont
by Silhouette 9y ago
The VAT MOSS scheme we're talking about (currently) only applies to digital services, not physical products. The problems you mentioned don't apply in this context.
There is absolutely nothing about this scheme that is better than before it was introduced. Nothing.
Several years after it was introduced, as others have noted, some of the payment handling services have kind of caught up, to the point where if you can use one of them then you'll probably fly under the radar.
You'll still have to spend time/money on the integration itself. You almost certainly still won't be fully compliant, because 100% compliance is practically impossible. You'll potentially be giving up a significant chunk of your margin in extra fees. And you'll still have the extra paperwork to do and the potential for an expensive audit by any of 28 member states' tax authorities if your number comes up. But at least you can carry on doing business in the meantime and hope for the best.
This tax scheme is my go-to example of what happens when politicians who see a problem but have no idea what they're doing try to fix the problem anyway. Your final sentence is right on point, sadly.
- Strom 9y ago> There is absolutely nothing about this scheme that is better than before it was introduced. Nothing. Under the previous scheme Luxembourg/Ireland would get a gigantic share of VAT. I guess you could argue that this money can be redirected by EU support programs to countries in need. I think that having the VAT go directly to the country closest to the buyer is a more optimal solution. Less dependence on EU welfare to know that your tax money is benefiting your community.
- zerostar07 9y agoBut that is already happening with regular taxes. EU allows apple and google to set up shop in Ire and do business throughout the EU. Why treat VAT so differently?
- gingerlime 9y agoI think this was the aim of the scheme, but perhaps similar to the GDPR[0], it's hurting small businesses extremely disproportionately to larger ones... [0] https://en.wikipedia.org/wiki/General_Data_Protection_Regulation https://en.wikipedia.org/wiki/General_Data_Protection_Regula...