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If you're using Stripe or Paypal, you can use Quaderno ( https://quaderno.io ). We're #VATMOSS complaint and help you to calculate VAT rates and track all the customer location evidences. Let me know if you have any questions.
Do you plan more integrations (e.g. Paymill)?
"Aside from the hideous administrative burden Patreon has now forced onto their European users..." Hyperbolic much? Way to blame Patreon for the arduous EU tax policy.
I forgot to include the part where every EU creator will also be obliged to register as a data controller with their national data protection authority, to ensure proper reportage and archiving of the VAT invoices which must be kept in a retrievable format for 10 years. Compliant marketplaces take care of that for you so that the individual seller/creator does not have to register as a data controller.
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Even their own tax page (linked to below) says that donations are considered earned income. HMRC does not care where it comes from or what it's called. It's income.
I agree it's income, but it's also a tip. Like if I sent $5 to your Paypal account directly. You need to declare that, but does Paypal care whether I owed you $5 or it's income? Good question actually. What's Paypal doing about VAT?
One would hope that by now that it's all been sorted.
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It may be a bit of hyperbole, but they are basically abandoning their EU users. It's a lot more arduous for individual content creators to track down and store VAT information for hundreds of $5 purchases than it is for the marketplace enabling those purchases to do so. Why not just cut-off EU users?
The rule is about place of supply, so any Patreon user receiving donations from people in the EU is presumably also supposed to register with VATMOSS and collect and pay VAT. Arguably Patreon aren't only abandoning users based in the EU, but users everywhere in the world with patrons there. I say "arguably" because of course I've no idea how that borderline-crazy rule is supposed to be enforced. (And I may be misunde…
Except that as soon as you became a VAT registered business it legally became your problem ;-) You have to "reverse charge" the VAT for those non-EU supplies and include them on your VAT return: https://www.gov.uk/vat-imports-acquisitions-and-purchases-fr...
Nearly all of my own purchases are subject to this and it's a bit of a pain in terms of admin overhead, but the good news is in many - but not all - cases the net financial position is the same as if you hadn't paid, since you can reclaim the reverse charged VAT.
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Why is it reasonable to expect Patreon to manage compliance and liability for such a law? If the EU wants to destroy commerce, that should be within the province of its citizens to address... oh wait. There's the problem.
Because that's what EU law, and its member states, have decreed. For example, here is the guidance from HMRC in the UK. https://www.gov.uk/government/publications/vat-supplying-dig... Per this law, the third party marketplace/gateway is responsible for compliance and liability. That is how everyone in the EU affected by the law views it, and it is why most marketplaces and platforms are slowly but surely coming into…
But Patreon is not in the EU's jurisdiction and therefore isn't subject to their laws (with the exception of any treaties that the US has with the EU).
> …hired a consultancy firm whose raison d'etre is tax avoidance…
You keep saying that like it's bad. The whole point of tax accountants is make sure that a business or individual pays the minimum legal amount they have to.
Patreon is the U.S. and not subject to European laws. Patreon is also really just a distributor of money, they don't provide the person with a service. Why is a person with a web design business looking to use a site used to help artists who have trouble connecting art and normal business income? Finally she tweeted about how many people saw that blog post and said she should have included a tip jar. It really seems…
Not really, every business with European based customers needs to comply with EU vat https://quaderno.io/blog/is-your-business-ready-for-the-new-...
I know that there are many different services like the ones in this thread, but as a single developer, on a bootstrapping project they'd still be out of budget
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Because that's what EU law, and its member states, have decreed. For example, here is the guidance from HMRC in the UK. https://www.gov.uk/government/publications/vat-supplying-dig... Per this law, the third party marketplace/gateway is responsible for compliance and liability. That is how everyone in the EU affected by the law views it, and it is why most marketplaces and platforms are slowly but surely coming into…
> Because that's what EU law, and its member states, have decreed. For example, here is the guidance from HMRC in the UK. But Patreon is not in the EU's jurisdiction and therefore isn't subject to their laws (with the exception of any treaties that the US has with the EU). > …hired a consultancy firm whose raison d'etre is tax avoidance… You keep saying that like it's bad. The whole point of tax accountants is make s…
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Surely, if PwC is wrong, and Patreon is responsible (which seems this way) and HMRC decides to investigate, they will go after Patreon, and not individual users?
Except Patreon is not in their jurisdiction, but their victims are.
Bear in mind that if people merely keep operating now as they did in 2014, HMRC loses nothing - it's only the tax authorities in other EU states who lose out. While no-one should take this as legal advice, I suspect all we'll see is other EU tax authorities taking action against the biggest non-compliers rather than individuals.
If you're using Stripe or Paypal, you can use Quaderno ( https://quaderno.io ). We're #VATMOSS complaint and help you to calculate VAT rates and track all the customer location evidences. Let me know if you have any questions.