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0 pointsjbverschoor4y ago0 comments

Plain incorrect for consumer VAT. You have to charge VAT based on the origin of your customer. Different percentages, different ways to figure out the origin of your customer. For businesses you can do reverse VAT, and you’ll have to ask and check that.

Bank payments are easy yes, but credit cards are not ubiquitous, online payments are different in all countries, direct debit is not always supported across countries.

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jlokier4y ago

When trading between EU countries, although you have to calculate and charge VAT based on the location of your consumer customers, if your business only does a small amount[1] of goods trade with various EU countries, or if it's supplying services[2], or if it's supplying online services[3], or if it's supplying goods or services to other businesses[4], it isn't necessary to have a company presence in each individual country.

So for businesses expanding into new EU countries it's not as onerous as needing a local presence would be.

(Disclaimer: I'm not an accountant and may be wrong. I'll take it on the chin if so. This is just my understanding, having needed to look this stuff up occasionally.)

[1] https://europa.eu/youreurope/business/taxation/vat/cross-bor...

[2] https://europa.eu/youreurope/business/taxation/vat/cross-bor...

[3] https://europa.eu/youreurope/business/taxation/vat/vat-digit...

[4] https://europa.eu/youreurope/business/taxation/vat/cross-bor...

emj4y ago

I do not see these things as a big problem though, payments are is a service we buy for our own country as well. The same service provider doesn't work everywhere but for us that is not a problem.

boruto4y ago

Can attest to this. We maintain different sales channels for all EU countries.

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