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VAT collection and payment

I am in the USA and my payment processor collects and pays the VAT for sales into the UK. I am OK with this. For those of you that sell into the EU, do you pay the VAT?

I did some research on the VAT. I found this old BOS discussion interesting:
http://discuss.joelonsoftware.com/default.asp?biz.5.569119.24

According to this Forbes article,  enforcement so far has been voluntary:
 http://www.forbes.com/sites/janetnovack/2014/05/15/european-vat-10-things-online-sellers-need-to-know-about-taxes-on-digital-goods-and-services/

Some say that the EU has no authority to enforce their tax laws on USA. I think that is wrong, but am not a lawyer. But I do know that US has treaties with all EU countries and I suspect that if the EU wanted to there are a number of things they could do to a US seller that is not paying the VAT for sales into the EU. First, they could deny you the right to do business in the EU. Maybe they could block your website. If they wanted to make an example out of a violator, they could probably make life miserable for them. I don't want to be that guy.
Bill Anonomist Send private email
Tuesday, October 07, 2014
 
 
>Some say that the EU has no authority to enforce their tax laws on USA.

Well I live in the UK, sell software in the US and have to comply with YOUR tax laws.

.... but actually you, the vendor, do not pay VAT.  The customer does.

And if the customer is a business then 99% of the time they can reclaim the VAT.  It's only if you sell to consumers that they will they end up paying VAT.

So don't begrudge VAT.  I don't see it as to different to US sales tax in practice.

How else are we going to pay for our superior public services?  ( Joke )
TomTomAgain Send private email
Tuesday, October 07, 2014
 
 
As TomTomAgain suggests, you don't pay the VAT. You, or rather your payment processor, simply collects it and remits it to the proper authority.

Business clients claim it back and retail customers are used to paying VAT on pretty much everything, so it isn't a problem.
Scorpio Send private email
Wednesday, October 08, 2014
 
 
That's different than my experience with some customers.
Scott Send private email
Wednesday, October 08, 2014
 
 
"Some say that the EU has no authority to enforce their tax laws on USA."

Yes and no.

They have no authority to prosecute you in your home country.

However, they do have the authority to ban your products from sale in their region because you are a known tax scoflaw.
Scott Send private email
Wednesday, October 08, 2014
 
 
"EU has no authority to enforce their tax laws on USA"

This is true, they don't, to the extent if a tax TREATY (key word) does not exist on a particular sale.

However, they do, very obviously, have the right to ban imports of your stuff until you come around.

So that's kind of the same thing.
Scott Send private email
Thursday, October 09, 2014
 
 
Wow, I thought I was posting to a new thread I had never posted to. Now, reading the replies again, I realize that I posted two responses already, yesterday, which I have no recollection of doing.

Last night I went out dancing. Don't remember much after that. Apparently I must have been slipped something, and then later ended up posting, in a state of no memory.

I guess I should now check to see if anything was stolen from my house.
Scott Send private email
Thursday, October 09, 2014
 
 
That sounds rather serious Scott?




AC
Reluctantlyregistered Send private email
Friday, October 10, 2014
 
 
@Scott
Not sure if I should mention this, but posting multiple times is something you do around here, a lot.

Not a problem in any way. Just saying.
Scorpio Send private email
Friday, October 10, 2014
 
 
>> Last night I went out dancing.

Maybe you meant 'drinking'? Normal person would remember everything after dancing, but as I usually dance only after I'm completely drunk, it sounded familiar :-)
ThistimeAnon Send private email
Friday, October 10, 2014
 
 

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