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That has nothing to do with this change in VAT rules. If that loophole actually existed Amazon would already be using it. US businesses are actually required t
by Kudos 12y ago
That has nothing to do with this change in VAT rules. If that loophole actually existed Amazon would already be using it.
US businesses are actually required to charge VAT, but smaller operations get away without doing that. At Amazon's volume it makes sense to set up tax entity in the EU to avoid import duty.
For example for amazon.com selling to a consumer in Ireland sees 17% import duty + compunded 23% VAT on the item cost and the shipping cost.
- deleted 12y ago[deleted]
- maxerickson 12y agoThey mean US businesses selling and shipping to countries with VAT.
- cmdkeen 12y agoThat's not what he means. US businesses selling to European consumer customers should be charging VAT and sending it to the relevant government. For small ones it doesn't matter because they're in the US and so beyond the reach of the EU states. Large ones however very much are and so have to comply with the law. Amazon couldn't decide to just run all its business through the USA to avoid charging VAT to consumers, they would be sued into oblivion.
- danmaz74 12y agoThat's only for sales made to EU customers.
- deleted 12y ago[deleted]