Other Software > Developer's Corner
New EU VAT rules change the game for digital businesses
wraith808:
The short version
From 1 January 2015 new rules on VAT (value added tax) come into force across the European Union (EU). These will affect you if:
* you sell ‘digital services’ – explored in a minute, but yes, it does include ebooks, PDF products, training materials, software and music files
* you sell business to consumer (B2C) to EU citizens, wherever you are based (B2B, business to business selling, is not covered by these rules).
The essence of the change is that the ‘place of supply’ for VAT purposes will now be the location of the purchaser, not the location of the seller. Sellers will have to add VAT to the purchase price at the rate for the customer’s country, and ensure that the appropriate payment goes to that country.
Due to the effects of harmonising countries’ rules and the way the admin will work, if you fall under the new rules you will have to register for VAT. All your digital sales will be liable for VAT, and once you’ve registered you’ll have to account for it on all your other activities too.
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Am I just ... looking at this wrong? Or am I seeing that even if I sell software to someone in the EU from the US, I have to pay taxes under this new regulation?
(more at link)
40hz:
Citation? :)
UPDATE: Never mind. Found it. All 92 pages of "explanatory" notes. Download link here.
TaoPhoenix:
Citation? :)
-40hz (November 20, 2014, 09:39 AM)
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Advanced Search, We luv ya! *
http://wordsthatchangetheworld.com/2014/eudigitalvat/
* When my standby Startpage Advanced missed this, I was forced to go to the Evil G. So per some of my other posts, I don't know what database they are pulling from, but this is yet another hole.
40hz:
Citation? :)
-40hz (November 20, 2014, 09:39 AM)
--- End quote ---
Advanced Search, We luv ya! *
http://wordsthatchangetheworld.com/2014/eudigitalvat/
* When my standby Startpage Advanced missed this, I was forced to go to the Evil G. So per some of my other posts, I don't know what database they are pulling from, but this is yet another hole.
-TaoPhoenix (November 20, 2014, 09:48 AM)
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Yeah, read that one. Short version: this is serious but nobody knows precisely how it's gonna work or who/what is covered yet. :huh:
Typical for new tax legislation. Which is unfortunate. Because the devil is always in the detail when it comes to tax law. :-\
wraith808:
^ I don't even see *how* it will work. If I sell a digital download to someone in the EU... how would they even go after me?
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