21–30 of 89 posts
Sounds like you need an accountant.
Accounting is important, but it's not the solution to the OP's problem. There are also questions of costs and efficiency, especially since we are talking about low-margin B2C sales.
i think this matter is confused because it contains two distinct things: a.) accounting for the VAT owned to dozens different countries and b.) "remitting": actually paying the VAT to the tax agencies of dozens different countries many services help with part a.), but i haven't found a single one that helps with part b.) - you can only circumvent the issue by selling on a platform (like the different app stores or "F…
Why is this related to thresholds if you're using a merchant of record?
You can't do this on country codes, if you're going to do this I would suggest whitelisting country's you know not to charge vat anywhere inside the country rather than vice versa.
We use Sphere ( https://www.getsphere.com ), and it’s the only good solution I know of for international VAT that handles everything end-to-end (registration, calculation, filing, and remittance). We use Stripe Billing, and we actually use Anrok for US sales tax compliance. They’re solid domestically, but they don’t do international registration, filing, and remittance; they only do calculation. There are also firms…
Hey, just curious, since you actually might know about this. My country (Norway) has extremely strict import rules. All items must have the VAT paid on them, and if they don’t, you have to pay the VAT plus an administrative fee in order to pick up the item. However, there have been plenty of times where I paid VAT to the store, but then I still get charged VAT upon pick up. According to the postal service, this is be…
The Norwegian VOEC system[1] is modeled on the EU IOSS system[2].
As with normal import declarations, missing documentation means you cannot claim any exceptions etc. Thus if the store forgot to register the VOEC number when they shipped the item, the one filing the declaration, say the postal service, has to assume VAT hasn't been paid.
Now, if this had been a normal customs declaration, one could simply submit a corrected declaration with the correct documentation later. However, since such low-value goods aren't declared using a normal customs declaration, one cannot do this.
They also don't want spend their resources cleaning up someone else's mess, thus they leave it up to the shop that made the error to fix the problem by reimbursing you the VAT they collected.
And yes, as a customer this sucks, as the shop often will just shrug and claim they don't know or they did the right thing.
[1]: https://www.skatteetaten.no/en/person/duties/purchases-from-...
I happen to use Paddle. Happen because Stripe isn’t available in my country and Lemon Squeezy wasn’t around / was very new back then. It’s OK but it really irks me that they don’t really fight chargebacks. (I haven’t had many but the fee they throw on you automatically is so hefty for a B2C.) Their V1 API (not Paddle “Billing”) is…not the best I’ve used.
I see the 'not fighting disputes' from both sides; as a vendor it sucks, but for paddle fighting them is a loose loose game, it would cost them say 50-200$ in time to handle each one and they get some of the liability for it too, also imagine paddle gets really good at fighting chargebacks - where do you think the fraudsters will go to process payments?
At risk of high-jacking this thread, some Merchants of Record (i.e. Paddle) require biometric authentication of company majority owners, which I find too invasive. Are there any Merchants of Record that don't? Sure, they handle taxation amongst many other conveniences. But despite their assertions of security and safety, we identified dumps for sale on the darknet of such biometric DB data exfiltrated from (continuin…
I know that sounds glib but I firmly believe that the rise of “merchant of record” startups like Paddle with large outbound sales teams has scared the bejeezus out of a whole generation of founders.
I'm @ a US-SaaS company using Stripe and Quickbooks.
Anrok is great! Anrok generates and files US returns. We still have to file EU OSS returns quarterly (based on the Reports created by Anrok), but it's manageable. Stay far away from Avalara... it's unusable and the contracts are predatory IMO. Filing UK VAT has been a mess. I'm @ a US-SaaS company using Stripe and Quickbooks.