4 ms·

It's not complicated to a consumer in the UK buying something but how complicated is it for someone outside the EU to figure out and apply this to their product

It's not complicated to a consumer in the UK buying something but how complicated is it for someone outside the EU to figure out and apply this to their product? And then do the same for every applicable tax in every country (including working out which taxes are applicable in the first place in a country that might not even document things in a language you can understand)

rahimnathwani 13y ago
then do the same for every applicable tax in every country They don't need to do it in every EU country where they have sales. They can just pick one EU country (ideally one with a low VAT rate, like Luxembourg): As regards business to private consumers (so-called B2C) sales, the single place of registration introduced under the new Directive will provide the non-EU traders with the option of discharging all VAT obligations through a single administration.[0] [0] http://ec.europa.eu/taxation_customs/taxation/vat/traders/e-commerce/article_1610_en.htm#a1 http://ec.europa.eu/taxation_customs/taxation/vat/traders/e-...
- PeterisP 13y ago
  If we're talking about barriers to entry, then think about one-man shops - for a non-EU programmer, registering a legal entity in Luxembourg is neither simple nor affordable.
  - rahimnathwani 13y ago
    You can register for VAT in an EU country without registering a legal entity. For example, if you were to choose the UK, you can register as an NETP (non-established taxable person): http://search2.hmrc.gov.uk/kb5/hmrc/forms/view2.page?formId=986 http://search2.hmrc.gov.uk/kb5/hmrc/forms/view2.page?formId=... Yes, you have to do a little research. Yes, you have to fill in some forms, and pay some taxes. However, whilst you might not like the cost of the tax itself, it's hard to argue that compliance itself isn't simple and affordable.

4 ms·

It's not complicated to a consumer in the UK buying something but how complicated is it for someone outside the EU to figure out and apply this to their product

by DrStalker 13y ago

rahimnathwani 13y ago
then do the same for every applicable tax in every country They don't need to do it in every EU country where they have sales. They can just pick one EU country (ideally one with a low VAT rate, like Luxembourg): As regards business to private consumers (so-called B2C) sales, the single place of registration introduced under the new Directive will provide the non-EU traders with the option of discharging all VAT obligations through a single administration.[0] [0] http://ec.europa.eu/taxation_customs/taxation/vat/traders/e-commerce/article_1610_en.htm#a1 http://ec.europa.eu/taxation_customs/taxation/vat/traders/e-...
- PeterisP 13y ago
  If we're talking about barriers to entry, then think about one-man shops - for a non-EU programmer, registering a legal entity in Luxembourg is neither simple nor affordable.
  - rahimnathwani 13y ago
    You can register for VAT in an EU country without registering a legal entity. For example, if you were to choose the UK, you can register as an NETP (non-established taxable person): http://search2.hmrc.gov.uk/kb5/hmrc/forms/view2.page?formId=986 http://search2.hmrc.gov.uk/kb5/hmrc/forms/view2.page?formId=... Yes, you have to do a little research. Yes, you have to fill in some forms, and pay some taxes. However, whilst you might not like the cost of the tax itself, it's hard to argue that compliance itself isn't simple and affordable.