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Need quick advise about VAT

Discussion in 'Business & Tax Advice' started by unknownn, Feb 16, 2012.

  1. unknownn

    unknownn BANNED BANNED

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    Hi if i'm going to have a company based in the EU and having a membershipsite
    targeting only US citizens do i need to charge them VAT which is in the EU country where my company is based ?
     
  2. volund

    volund Senior Member

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    Pretty sure the answer is no, I have dealt with EU companies and have never been charged a VAT. The tax should be triggered by the customers location. I imagine this probably makes your tax paperwork more complicated but whoever you have processing your payments might take care of most of that for you.

    Honestly if a company tried to charge me the extra tax I would just walk away. US taxes are bad enough I am sure not paying taxes for somewhere I do not live.
     
  3. savvypro

    savvypro Regular Member

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    Yep the answer is no.

    Only EU based buyers have to pay VAT.

    A side note:
    If you do the payment processing through 2checkout.com, their agreement means that they are the ones who have to deal with the VAT issue.