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>Is that sales tax thing still a major problem? All you need to do is determine location (through IP, credit card etc) then do a lookup in a library, then add t
by Mirioron 8y ago
>Is that sales tax thing still a major problem? All you need to do is determine location (through IP, credit card etc) then do a lookup in a library, then add the relevant amount to the price.
Yes, it is. Let's say you're running a one man business selling digital knitting patterns. Before the law you could sell to anyone in the EU and you'd only have to deal with your own country's tax authority. After the law you had to deal with the tax authority of every single EU country you had a buyer in. Is it worth selling 10 patterns to Lithuania? No, because filing taxes to the Lithuanian tax authority is more expensive than what you would've made from the sales. Thus, you don't sell to Lithuania.
There was no minimum threshold. Earned €0.01 from another country? Better file those taxes. Almost every single country has a minimum VAT threshold, but EU politicians in their infinite wisdom didn't think of that.
This situation persisted until this year, where there's finally a minimum VAT threshold in place. It's low (€10,000) but at least it's something. It only took them FOUR YEARS to do this. I wonder how many micro and small businesses closed as a result.
- raverbashing 8y agoAs much as I think the law is annoying > After the law you had to deal with the tax authority of every single EU country you had a buyer in. Incorrect, that's why the VAT MOSS scheme exists https://europa.eu/youreurope/business/taxation/vat/vat-digital-services-moss-scheme/index_en.htm https://europa.eu/youreurope/business/taxation/vat/vat-digit... The vat threshold is definitely welcome though