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If you think of doing business in the EU, though, rather than just the UK (which is a bit more geographically/population comparable with the U.S.), then you do
by _delirium 13y ago
If you think of doing business in the EU, though, rather than just the UK (which is a bit more geographically/population comparable with the U.S.), then you do have the same multi-jurisdiction thing over the large number of VAT rates that differ according to the customer's location. For example if you are a UK bookseller shipping to a customer in the UK, you don't charge VAT (the UK exempts books). But if you are a UK bookseller shipping to a customer in Denmark, you charge 25% VAT (Denmark doesn't exempt books, and its rate is different also).
I think businesses under a certain revenue threshold, though, are exempt from calculating destination-based VAT, so it doesn't hit small businesses.
- rahimnathwani 13y agoCorrect. The thresholds are here: http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf http://ec.europa.eu/taxation_customs/resources/documents/tax... For reference, the threshold for Denmark is about 38k Euros, so you (the UK-based bookseller) wouldn't deal with this until your sales _to Denmark_ topped that amount annually.
- walshemj 13y agoTrue but the USA is ostensibly one country the EU is not