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This is not at all what I’ve encountered at several jobs, and the auditors have confirmed. The VAT structure in the EU is the responsibility of the EU. An EU c
by tatersolid 9y ago
This is not at all what I’ve encountered at several jobs, and the auditors have confirmed.
The VAT structure in the EU is the responsibility of the EU. An EU customer buying something or some service in USD from a US company with no presence in the EU is responsible for handling their own tax liability with the EU.
Conversely, I have bought many items and services online from EU companies who don’t have presence in the USA. Not one has charged me VAT nor the local “use tax” the People’s Republic of Chicago charges for internet-based services.
In short, my experience is you’re just plain wrong. A bunch of expensive and competent accountants hired by my various employers agree that you’re wrong.
- xxs 9y ago>The VAT structure in the EU is the responsibility of the EU. An EU customer buying something or some service in USD from a US company with no presence in the EU is responsible for handling their own tax liability with the EU. If you import goods (receive them via mail), there is a customs clearance required + VAT for prices over N euro (where N varies on the country but usually less than 25e). Indeed that's a direct responsibility of the receiver. >Not one has charged me VAT nor the local “use tax” the People’s Republic of Chicago charges for internet-based services. Please don't mix the laws in different jurisdictions. VAT is quite different than sale/use tax. Try and buy goods from USA (even ebay suffices) and receive it within the EU w/o paying VAT (unless explicitly exempt from the tax) Electronic services have no customs clearance or physical presence and what I explained above (VAT number, etc.) applies. >A bunch of expensive and competent accountants hired by my various employers agree that you’re wrong. Proof by authority ain't cool. VAT does apply to the end user (companies can receive it back, etc.), so I am unaware if your employers used to sell to end users directly. If selling services was that easy, registering outside EU would so temping as pricing ~20% less would be great. As proof goes: I consulted an accountant about US offered services to a local EU member state. (didn't have to pay anything) Examples of not being able to sell services to US residents are forex and gambling. Non-US companies practically can not take US customers. Selling services online ain't that easy even to US.
- tatersolid 9y ago> Proof by authority ain't cool. Appeal to authority isn’t a logical fallacy when the authority is an expert in the domain.