4 ms·
You are right. It doesn't excuse Stripe Tax, but a business can have both presence nexuses (ie we sell from there) and sales nexuses (ie we sell enough to there
by rezonant 5y ago
You are right. It doesn't excuse Stripe Tax, but a business can have both presence nexuses (ie we sell from there) and sales nexuses (ie we sell enough to there that the local laws say we need to register and collect taxes).
The details vary for the EU depending on whether the product is business-to-consumer or B2B and what kind of volume we're talking about. Some countries, such as the US, have a double taxation treaty with the EU that allows you to use a self-charge VAT structure when you do small amount of sales which has the effect of not needing the US seller to register for VAT, provided your tax authority (ie the IRS) authorizes you to participate under that treaty.
Correct handling of sales tax/VAT globally is complicated and I definitely had a "oh honey" moment when reading that sentence as well.