We're a small US company selling digital course material to a world wide audience. We have gotten conflicting advice about whether or not we need to register and collect VAT for EU buyers, even though our amounts for each country amount to just a few sales per month per EU state.
The overhead of setting up the infrastructure to collect, calculate and report EU VAT seems heavy compared to the number of sales we have. I have a hard time seeing it as even worth selling to EU buyers.
This is a corporate tax issue, which I dealt with when the company I worked for sold in Europe. I met with international accounting firms and VAT experts. First, it sounds that there is a de minimis situation where the income is so minor as to not warrant local country registration, and second, European countries are notably concerned about digital sales and lack of revenues from companies ranging from Microsoft to Google, which are undergoing tax challenges for the same type of revenues. So if your company has notable income, it will be targeted. For smaller revenues that reach a substantial threshold, I suggest consolidating all EU sales, choose one country as the base of operations to handle all VAT matters.
Hi, currentry there is no threshold for the MOSS registration in the EU , so if you are selling digital services to non taxable person B2C in EU you are obligated to register and pay the VAT. The European Commission is considered about the implementation of the treshoaled from 2018.
Steve Karmeinsky is wrong.
Any company world wide, selling to EU customers needs to incorporate for VAT in EU and collect VAT from those customers when selling online.
If you're outside the EU you do not need to charge VAT for services to the EU, I don't believe the US has a tax/VAT arrangement with the EU. If you set-up shop in an EU member country and sell from there, then you would have to collect VAT.