Euro-Zone VAT - Tomfoolery Starting Jan 1st

[CCarter]

For those that don't know, the EU retards are at it again. This new VAT stuff started taking place Jan 1st:

Link to two articles in case you are on one or the other side of the situation:

"I'm in the US – what if I just ignore the EU VAT changes?": http://www.happybootstrapper.com/2014/im-us-whatll-happen-just-ignore-eu-vat-changes/

"EU VAT changes for online businesses – Act before Jan 1st!": http://www.happybootstrapper.com/2014/eu-vat-changes-online-businesses-act-jan-1st/

Quote from the first link:

What'll happen if I ignore the changes?

If you take a look at the table above, you’ll notice that this change affects only EU businesses. The same rule has been active in Non-EU countries already since 2003.

"Apparently" they'll start enforcing these new rules "more strictly" - who knows how, since they will be attempting to go after companies outside the EU.

 

[eliquid]

Oy vey

 

[Insaint]

Non-digital goods have thresholds (€10-70k per country) below which you pay all VAT to your own country. So I have no clue why they are introducing these changes without including the same thresholds for digital services.

I have no idea why they are making the distinction in the first place. Does anyone know the reasoning behind it?

 

[RiverStyx]

ugh

 

[RiverStyx]

I just read through the details of this and for all intents and purposes this eliminates the VAT threshold if you sell outside your EU country. I signed the petition on change.org to uphold the VAT threshold for small businesses. Right now it looks like they are only going after B2C sellers of Saas type products, so will likely affect things like serpwoo, semrush and others from what I can tell. Basically it seems like if your B2C customer can supply you an EU VAT # then you don't have to charge them VAT but if they can't (like all B2C customers) then you have to charge them VAT based on the VAT rate in THEIR country.

It also seems likely that after this they will try and spread this nonsense to online sellers of physical goods. I think its in all of our best interests to do what we can to quash it. Links to petitions:

https://www.change.org/p/pierre-mos...at-laws-for-micro-businesses-and-sole-traders

https://www.change.org/p/vince-cabl...old-for-businesses-supplying-digital-products

 

[Seth]

I Agree @CCarter . All EU country economies are shit due to austerity. Just more of the same; Super-Rich hoarding all wealth.

 

[Insaint]

It also seems likely that after this they will try and spread this nonsense to online sellers of physical goods. I think its in all of our best interests to do what we can to quash it.

Definitely. If they apply this to physical goods it would crush one of my e-commerce sites. I would have to pay VAT in ~15-20 countries with different rates. In that case I would stop serving EU customers, because it would not be worth the hassle.

 

[CCarter]

I feel like there is a market for a VAT Api or even free version for conversions. The API takes in the country, and outputs the rate your eCommerce store need to charge.

 

[Insaint]

The rates are the easiest part and I'm sure some blog posts will pop up soon enough with a handy list. http://ec.europa.eu/taxation_custom...tion/vat/how_vat_works/rates/vat_rates_en.pdf has an overview of all VAT rates, you just need to find the correct one. In almost all cases this is the highest rate you can find.

The hard parts are keeping track of everything in your administration, proof of location and having to file two VAT returns every quarter/month/whatever (depending on your turnover).

Anyway, I'm sure there will be a market for a VAT API or plugins for the most popular e-commerce sites (WooCommerce: https://wordpress.org/plugins/woocommerce-eu-vat-rates-sync/).

If you are able to build a solution that is able to 1. Charge the correct rate. 2. Adds proof of location (IP + address). and 3. Exports all of that ready for MOSS filing you could make a killing though.

 

[Oceanic]

I Agree @CCarter . All EU country economies are shit due to austerity. Just more of the same; Super-Rich hoarding all wealth.

Sadly, austerity has nothing to do with the tax, it is how much these EU and various governments piss up the wall that then means higher tax. Austerity is a great thing.

Look at the advice given to anyone with credit card debts, the first thing they are told is to reduce the debt and cut spending.

The problem lies with the the left who believe in an "entitlist society" where the state pays for everything.

 

[Seth]

It was an off-handed joke. That's all. And I won't discuss economics on this great forum. But wtf is an "entitlists society?" Have never seen one and I defy you to show me. Lol. Some people need to help through no fault of their own. Disadvantaged, mentally-challenged, students, etc. Hell, even goliath American corporations receive huge tax welfare (susidies). So go figure.