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Vat rates outside of EU
Hello,
I'm consulting some small websites with induviduals outside of EU, formally, what's the right way to handle taxes? The Swedish tax department told me that when it comes to digital sales, the clients location is what matters - but I haven't seen any provider here charging vat to non EU clients, is it because these countries have no way of punishing you if you simply don't care if you're within the EU or am I missing something here?
Thank you
Comments
So you asked the authoritative source and then you don't believe them and decide to ask random people online? Great plan
But to answer your question, what they told you is true.
I do trust their information, the reason for my question is simply because I do not see what they say appyling here, and I'm wondering why providers here dosen't charge what they're suposed to charge, but I guess it's true what I stated above and there's simply no legal reason to bother paying the vat.
i guess they not collect if its outside of EU.
You collect VAT for clients WITHIN EU under the MOSS scheme (for digital services). You do not care about non-EU clients and do not collect any VAT from them.
Mainly because the VAT per se is mainly a European thing. US has sales tax and it’s incompatible, for example.
Thank you, out of interest, do you charge vat to anyone outside of EU?
Not at present for Digital Services.
We still charge VAT for goods, say hard drives, for a server colocated physically in London even if the Customer is non-EU based.
No you're not supposed to.
And of you're not an EU company, you don't charge VAT to EU customers either, unless you're big enough for the EU to actually do something about it.
I'd disagree. The penalty tax is expensive and it is levied from the very moment the law changed.
Why would anyone outside of North Korea (who doesn't have assets there) care about levies NK "imposes"?
I have no idea what you're talking about and how is that related to either of the Koreas.
What if you
s/North Korea/EU&s/NK/EU? Can't be that hard.Oh, I don't know, maybe someone who doesn't want to be surprised at the border 10 years later at any EU affiliated country ;-)?
Enforcement is done via the local tax collection systems. To start the investigation you just need a tax inspection at one of your EU Customers who put a payment to you in their books.
What provider do you represent again?
Must be hard fearing your shadow over literally nothing.
Not sure what you mean here. If you're trying to say that the tax collector in the UK will send paperwork to the IRS to collect UK vat, that's patently untrue.
The provider of tungsten rods of truth. And you?
Ok, waste of time then.
Without taking sides, this is a very interesting discussion. Do you care about laws where you're not required by the country that you're based in to follow? I guess there's many aspects of this and lots of different cas
I don't believe it's healthy to have that kind of view about yourself. Then again, who am I to judge?
I guess it depends on how massive the ignorance of each person is. I mean, one isn't responsible about genetics but one can - in our age and time - actually become educated. Some could end up fearing they'll get thrown at a work camp. It's their right, I fully support it.
wat
Quod Erat Demonstrandum
VAT is charged to EU residents based on their country. Unless they are a business with a VAT number in which case they are exempt. I suspect there is lots of abuse and fraud. Pretty easy for someone to give any VAT number. The only checks done are usually just verify it's a real VAT number from the right country and associated with the business name on the account.
There are also lots of people non-compliant who do not charge VAT. If you're a little guy you might be able to get away with that for awhile.
@deluxe
Thanks for your first post in this thread. It was helpful.
As for the rest and particularly wrt @Clouvider and some others it should be quite obvious that they are right and you are wrong.
Maybe one important reason is that he looked from a professional perspective while you looked from a personal perspective. Looking with the eyes of a business one simply wants to get things done and to be on the safe side, no matter whether some rules seems to be good or stupid. As private persons however we often tend to have a different viewpoint.