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Yes, but for small businesses that often means no VAT at all. For instance, the VAT registration threshold here in the UK is £85,000. Yet, until last month, you
by fauigerzigerk 8y ago
Yes, but for small businesses that often means no VAT at all. For instance, the VAT registration threshold here in the UK is £85,000. Yet, until last month, you would have had to register for VAT even if you sold just pennies worth of (digital) goods into other EU countries.
I'm not quite sure how it affects US companies. There is no sales tax on exports from the US. So I think even if a US company would normally charge state level sales taxes on local sales, they would no longer have to charge VAT on any sales into the EU below 10,000. But I could easily be wrong on that.
I'm not an accountant.