I am more worried about opening the Pandora?s Box to retaliatory taxation. Other countries may claim tax jurisdiction on EU business' sales of digital goods and services to their citizens. ...

We are a foreign seller from the EU to many countries outside of the EU ...

Well,do you sell to Russia :)

I would think this could also affect non EU businesses that process with Zombaio (if anyone still does....).

Years ago when I had an account with Zombaio, I remember having to put their Swedish address (or something, I can't remember) on my site as partial owner and processor, because they essentially formed a version of my company in their location to get the cheaper rates from Visa/Mastercard. Or something like that, it's been awhile.

But anyway, that would mean that I technically would have an EU business, although it is set up strictly for processing and my "true" business location is in the US.

:1orglaugh:1orglaugh:1orglaugh

Not unless you are a registered company in Sweden or a registered foreign branch office paying taxes in Sweden.

This. And they scan everything, so I doubt you could avoid paying.

If there is not invoice in the package (and no serious online shop will do this for you), the customs may apply rates based on materials the goods are made from. Just saying it is a gift won't save you.

Years ago, when going on holiday to Croatia, we carried a camcorder and we let our customs know we have it with us, they issued a paper confirming the camcorder had been bought before our trip - to avoid having to pay toll for it when getting back home.

You have to pay taxes for gifts as well...

Besides this.. when I ordered a microphone years ago from USA to EU, I believe I paid their VAT and also our local VAT+toll, so being an international customer did not save me from getting charged US local VAT rate.

I don't want to know how much is this going to inflate the rates one have to pay to the accountant... why couldn't they leave the VAT rate of the supplier and not the customer when B2C, this makes for one hell of a mess when calculating...
(secret society of EU accountants made it happen, you know, to make more money lol)

One can always accept purchases without asking for a customers address ....

It is done on IP, and on the country that the customers credit/debit card was issued. Either way they have a location for your customer.

My own acquiring bank (EU) is in the middle of a last minute panic to ensure they have all of their paperwork in place for all of their clients. Under pressure from their central bank they are going through each contract to ensure that the UBO is in no doubt and they can identify the money trail.

Be under no illusions, if you use an EU acquiring bank, and that is most companies in adult, you will not escape this law. You might avoid it for a short period, but your merchant account can be frozen and your funds held. The only way to escape is to have nothing in Europe, and accept the difficulties of non EU merchant accounts. This is ok unless you are actually an EU citizen, as then they will still get you when you actually need to repatriate some of the profits from your efforts.

I see a big future for companies that can set up non EU facilities, as I predict a movement away from all of the Cypriot, Irish, and UK based billing entities.

:2 cents::2 cents::2 cents:

Isn't this going to be one more thing to discourage people from doing business in the EU?

Yes. It will probably also be changed as the rules are impossible to abide by.

Yes. Plus EU customers are not going to want to pay 20% more for their porn subscription.

Also from the Forbes article...

You have to reveal all your EU sales to one of the EU governments...

European VAT: 10 Things Online Sellers Need To Know About Taxes On Digital Goods And Services - Forbes

This is a fucking mess...

You file a report each quarter with the total sales made in each member state (there are 28) and you must keep all sales records for at least 10 years. Some states even require you to issue a VAT invoice to the end client.

You have to use 2 different methods to determine the country where you client resides to calculate the proper VAT %. Some of the methods listed in the law are : billing country, credit card prefix, mobile number, IP address.

Right now there's no practical way for EU to enforce this law, but at some point in the future they will stop you from accepting EU issued credit-cards if you don't comply.

Governments complained to EU that their citizens were buying services online from countries with a lower VAT (eg. 18% in Malta versus 27% in Hungary) so they will pursue this matter when their citizens will turn to outside EU companies.

Disclaimer: I run a business that provides API services to calculate and report VAT. If you have questions on this issue, PM me.

i have sent you a message...

actually i tried but you switched that off - please email me at sales at amazingcontent.com

Could someone from the IPSP like Epoch or CCBill comment?

http://27.media.tumblr.com/tumblr_kp...e5g2o1_500.gif

We are having a Chinese fire drill ATM!

Turn the heat up a bit, its fucking chilly here ;):helpme

What if you miscalculate and overpay the various VATs? Who refunds you? LOL

This is fucking ridiculous. Good luck enforcing this insanity. Fuck, if Europeans will take to the streets and shut down their Governments over a Poll tax or train schedules or the size of fucking water glasses how long will this last anyway?

What about EU residents, I mean the business? It is a bit unclear to me how one can apply to the simplified method. Based on my own country's website, only foreigners can do it with simplified method, I can't. What the fuck is that about? Maybe I could register to another EU country and use them as a clearing house, but what about my home country, to what I already pay VAT? Does that clearing house deal with my own country too?

The country to who you paid too much.

my tax accountant said he will register us for the simplified method here in CZ

if you don't have one yet - get a tax accountant

Maybe I should. So far I have done it myself with the help of my school books (and the actual studies, as far as I remember something). But I don't know that will it change anything, as the accountant goes with the same rules as everybody else.

LOL!! AHAHAHAHA!!! OK Czech Republic, please refund me the $2,046.23 in overpaid VAT tax please.

Are you fucking high?

So what will happen then? People from France will only buy French porn, people from Germany will only buy German porn, people from Holland will only buy Dutch porn.....?

Good job EU.

VAT - European commission

This is a easy to read list of what you should add to the invoice.
Sales Tax & VAT Rates « HostGator.com Support Portal


https://www.bookfi.eu/reading/europe...-bkd-ubye.html

see page 26

see:
Telecommunications, broadcasting & electronic services - European commission

https://www.youtube.com/watch?v=YtksJEj2Keg

What is the funny part? Chezh Republic is not some third world country, and besides, you only deal with the country into where you have established that simplified method "account", like UK, Germany, or whatever was your choise.

For example in Finland (where I live) I don't ask for refunds if there will be one. They know my company's bank account and the refund is automatic. I just report and pay (or don't pay if there will be refund for that month). If that sounds good, establish the simplified method account into Finland. Whichever country ows to you, you just deal with Finland.

I don't get your last sentence. Why would someone buy porn just from their country? Because of these new VAT rules? For example Amazon pays VAT for regular products to each country into what it sells about 35 000 euros or more worth of stuff (the sum varies little to country to country). That doesn't stop people from buying from Amazon UK, etc. The only thing that is new, is that now this applies to all digital sales, regardless of the sum.

Not that I would be very big fan of this new thing. Although it will decrease tax competition (whether you see it as a good or bad thing).

If you think this is bad (the new EU VAT regulations), wait until the USA makes you pay sales tax on digitally downloaded ''goods'' -- software or any file that you sell (stock images, content) to buyers in the USA. We don't differentiate B2B, B2C

50 (47?) different sales tax jurisdictions (or; 'uni-tax') and make the law apply to EU nations -- retaliatory jurisdiction ... http://3mp1r3.cam500.com/img/boards/frantic.gif http://3mp1r3.cam500.com/img/boards/frantic.gif http://3mp1r3.cam500.com/img/boards/frantic.gif

Things may be differant in Finland but sorry I do not trust even countries like Germany or the UK to give me BACK overpaid taxes. LOL Maybe you have more trust than i do.

And what I mean by French buying French porn, etc: If I am a citizen of The Netherlands and I want to join a US porn site and that US porn site now has to charge me VAT....well perhaps I will join a DUTCH porn site and NOT pay that extra fee. Yes?

No, if it is a B2C sale there will be the same VAT added from an EU seller *(if the site outside of the EU complies with the EU VAT tax scheme ). The next move is with the processors and the card issuing banks.

Well, don't trust, but the one thing that is good in bureucracy (also one of the bad things), is the thing that it is usually quite mechanical. If they have the system to give your money back, they will give it back (if they just have the money).

About that latter issue, if customers join to the Dutch site, they will pay the exactly same VAT. As the whole idea is to collect the Dutch VAT, whether the seller is Dutch company or US company. So, no fucking difference.