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> As a non-EU entity I legally can not collect VAT on behalf of EU customers because I have no way of paying that tax on their behalf. That’s not how this work

> As a non-EU entity I legally can not collect VAT on behalf of EU customers because I have no way of paying that tax on their behalf. That’s not how this works. You are required to collect VAT and use the MOSS system to pay it quarterly.

dogma1138 9y ago
That's not correct as a non-EU entity I'm under no obligations to register for MOSS or to collect VAT unless under TBES (which is nothing new since it's an extension of the old VOES scheme) which applies to a limited number of services only: https://ec.europa.eu/taxation_customs/business/vat/telecommunications-broadcasting-electronic-services/content/when-and-where-charge-vat_en https://ec.europa.eu/taxation_customs/business/vat/telecommu... Even if by some chance you are a small business that for an inexplicable reason does fall under this you can get out of this scheme fairly easily (VAT exemption rules apply) and more importantly VAT can be handled by a proxy e.g. a payment processor. For businesses there is no VAT collection at all and all businesses must pay reverse VAT when purchasing (or providing) services from (and to) outside of the EU regardless if they fall under TBES or not.
- the_mitsuhiko 9y ago
  If you sellnon physical goods you are required to collect VAT when you cross a per country threshold.
  - dogma1138 9y ago
    Again only if the goods fall under the criteria set by TBES if you are above the limit in a specific country which in the UK for example is £85,000 and it's more or less similar across the EU. This means that most businesses it's not an issue since you can have a turn over of a few 100,000 EUR spread across the EU without being required for registration. This is also solved via your payment processors and what would you know the EU also offers you the infrastructure to register where is the one stop shop for GDPR?
    - rexgallorum2 9y ago
      Double check the thresholds in the various EU member states. They differ considerably, and the UK is an outlier in that it is so high.
      - dogma1138 9y ago
        34,000 EUR on average 31,000 without the UK, and 37,000 without the Nordic countries. You also must provide a service that is qualified for VAT since it doesn't cover all non-tangible goods e.g. anything that is actually produced by a human but is delivered digitally like professional services.

dogma1138 9y ago

That's not correct as a non-EU entity I'm under no obligations to register for MOSS or to collect VAT unless under TBES (which is nothing new since it's an extension of the old VOES scheme) which applies to a limited number of services only: https://ec.europa.eu/taxation_customs/business/vat/telecommunications-broadcasting-electronic-services/content/when-and-where-charge-vat_en https://ec.europa.eu/taxation_customs/business/vat/telecommu... Even if by some chance you are a small business that for an inexplicable reason does fall under this you can get out of this scheme fairly easily (VAT exemption rules apply) and more importantly VAT can be handled by a proxy e.g. a payment processor. For businesses there is no VAT collection at all and all businesses must pay reverse VAT when purchasing (or providing) services from (and to) outside of the EU regardless if they fall under TBES or not.

the_mitsuhiko 9y ago
If you sellnon physical goods you are required to collect VAT when you cross a per country threshold.
- dogma1138 9y ago
  Again only if the goods fall under the criteria set by TBES if you are above the limit in a specific country which in the UK for example is £85,000 and it's more or less similar across the EU. This means that most businesses it's not an issue since you can have a turn over of a few 100,000 EUR spread across the EU without being required for registration. This is also solved via your payment processors and what would you know the EU also offers you the infrastructure to register where is the one stop shop for GDPR?
  - rexgallorum2 9y ago
    Double check the thresholds in the various EU member states. They differ considerably, and the UK is an outlier in that it is so high.
    - dogma1138 9y ago
      34,000 EUR on average 31,000 without the UK, and 37,000 without the Nordic countries. You also must provide a service that is qualified for VAT since it doesn't cover all non-tangible goods e.g. anything that is actually produced by a human but is delivered digitally like professional services.