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Are you responsible for charging/collecting VAT in the EU?

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guest819:
The simple answer is Yes! you are.

I'm just an individual, i'm not a business
If you're selling digital goods (eBooks are digital goods) then it is your responsibility to charge, collect and repay the EU VAT at whatever rate (between 17 & 27%) is required by the country your customer is buying in. If you're selling via Amazon or other major platforms they have this covered for you. You can see this reflected in the charges on their setup page.

If you are using Shopify or other sales products on a website, (yours, or a group selling site), then you are required to settle all the VAT on outstanding sales. Warning! If you don't collect it from the reader/listener you will be subsequently charged by the country from which you have a VAT liability anyway. It's your responsibility.

I'm not in the EU I'm not subject to their regulations.
Unfortunately yes, you are. What's more, if you want to sell within the EU you are required to obtain an EU VAT registration. It's covered by an organisation called MOSS (mini One Stop Shop) where you can register yourself.
e.g.
For the non-Union scheme, the taxable person (who has neither a business establishment, nor
a fixed establishment, nor is registered or otherwise obliged to register, in the EU1
) can
choose any Member State to be the Member State of identification. That Member State will
allocate an individual VAT identification number to the taxable person (using the format
EUxxxyyyyyz).

If you don't choose MOSS you may be required to register in all EU countries individually (28 countries).

I'll add to this information once everyone has a chance to ask questions/discuss their position. It won't affect 98% of you, but if you give/sell or other in the EU then you might need to re-think your strategy.

David VanDyke:
The key takeaway for most people is, as long as you sell through a vendor like Amazon or Kobo, it's all integrated and you need do nothing more.

Only if you sell directly is this an issue.

Vidya:
are we required to obtain an EU VAT registration even if we sell through Payhip, which takes care of VAT?

I posted this in my thread and will ask again here:

this was discussed on kb and I remember some people saying the authorities in Europe can’t actually do anything if you dont add the correct VAT for their nation and remit it to the tax office in that country.

I live in India. I’m asking seriously: what are the authorities in Europe going to do if I don’t pay them the VAT?

How will they even know about it unless I become a big name?

And ok, let’s say I do become a big seller. Again, what legal action can they take to make me pay the tax? Because from what I remember of the KB discussion, some said they can do nothing and we should just ignore all requirements for VAT and continue on our merry way.

guest819:

--- Quote from: Vidya on October 17, 2018, 11:49:38 PM ---are we required to obtain an EU VAT registration even if we sell through Payhip, which takes care of VAT?

--- End quote ---

No, if you're using any payment platform that says they take care of VAT then they will shoulder the burden of collecting and paying the relevant authorities. Some don't so if in doubt check them and get it in writing.


--- Quote from: Vidya on October 17, 2018, 11:49:38 PM ---this was discussed on kb and I remember some people saying the authorities in Europe can’t actually do anything if you dont add the correct VAT for their nation and remit it to the tax office in that country.

--- End quote ---
Yes, they can track you down. Whether they will bother to do so, or not is dependent on a few things. Your level of income from their particular country, their threshold for pursuing the debt and their interest in doing so. some countries are more switched-on than others.


--- Quote from: Vidya on October 17, 2018, 11:49:38 PM ---I live in India. I’m asking seriously: what are the authorities in Europe going to do if I don’t pay them the VAT?

--- End quote ---

This is simple to answer. Probably nothing if you're small-fry, but don;t count on it. Some legal firms like to collect debts on behalf of a country and add their own extortionate fees to the fine for non-payment. You could start with a small debt, but incur a massive fine - ask yourself is it worth it. Probably not. Use a payment platform that does it for you then you won;t have any concerns.


--- Quote from: Vidya on October 17, 2018, 11:49:38 PM ---How will they even know about it unless I become a big name?

--- End quote ---

Every transaction has a record from end-to-end. Even Swiss bankers cannot hide people's money any more.


--- Quote from: Vidya on October 17, 2018, 11:49:38 PM ---And ok, let’s say I do become a big seller. Again, what legal action can they take to make me pay the tax? Because from what I remember of the KB discussion, some said they can do nothing and we should just ignore all requirements for VAT and continue on our merry way.

--- End quote ---

Tax is a serious issue in every country so there are usually rules about them and now we are truly a global society, they have worked out agreements between them. You may find you are pressed by your own tax authorities, or by a legal firm in your own country empowered to collect the foreign debt. Remember, there is money to be made in debt collection. If you are a big seller you will become an easy target.

HSh:
Payhip handles VAT.  You don't need to worry about it on that platform.  They add whatever the buyer owes for their location and send it to the EU. 

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