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I can sell services domestically up to a limit of about 40,000 euros before I need to register and account for VAT. If I make even a single EU sale, I must imme
by sbacic 8y ago
I can sell services domestically up to a limit of about 40,000 euros before I need to register and account for VAT. If I make even a single EU sale, I must immediately register for VAT and pay tax on that sale, either through MOSS or directly to the country my customer is in. The EU is now "generously" considering introducing a limit of 10,000 euros before you need to register for VAT.
I also need to disagree with the parent poster - the rules for what is and is not a digital service are relatively clear - but not clear enough that your local tax officials understand it, apparently. I've had situation where my local tax agency incorrectly interpreted that my services (freelance software development) could be construed as being digital services and thus could fall under this scheme.
Due to this and various other reasons, I am considering emigrating from Europe - some back of the napkin calculations show that I could live a comfortable middle to upper middle class lifestyle in other parts of the world just on the tax difference.
- AnssiH 8y ago> The EU is now "generously" considering introducing a limit of 10,000 euros before you need to register for VAT. No, that limit was passed in 2017 and took effect for digital services in January 2019: https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32017L2455 https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32... I.e. if your cross-border EU sales of digital services are less than 10 000 €, you can consider the sales domestic.
- sbacic 8y agoThanks for mentioning that! I remember reading that it was being discussed, but not that it had already been implemented. It's not much, but still better than nothing.