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Originally Posted by Spudstr
More like they established a corporation in the EU and now have to collect vat. No US company would ever have to collect VAT unless they have a place of business in that country.
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That's not true, there are special conditions and thresholds - but technically everyone doing business with EU residents or companies has to pay VAT
See:
http://www.eurovat.com/faq.htm
Quote:
What does "VAT registration" mean?
A North American company sometimes conducts business, such as selling goods or services within the European Union, that may require VAT registration with the local tax authorities. [...]
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Of course most US companies (especially smaller ones) neither know about that nor will they ever be forced to pay it. But once you become BIG this may come back to you. This isn't well known as most companies big enough also have a place of business in the EU (like Amazon, etc.)