Earlier quoted context omitted.
No, it does not. A company in PA, USA does not give two cents about EU VAT. It charges EU customers in the US and provides services in the US and tells EU to shove it. Actually, it does not even do that. It simply ignores everything that EU does.
Like I've said if you are small enough to avoid any interest, it's ok - but selling electronic services to EU residents without VAT in the EU is not legal. Overall VAT is taxation on the consumption, the consumption is within the EU member state, the state receives the tax. Summary: When US companies encounter European VAT: When doing business in the territory of the EU a company will deal with VAT: when selling some…
The VAT structure in the EU is the responsibility of the EU. An EU customer buying something or some service in USD from a US company with no presence in the EU is responsible for handling their own tax liability with the EU.
Conversely, I have bought many items and services online from EU companies who don’t have presence in the USA. Not one has charged me VAT nor the local “use tax” the People’s Republic of Chicago charges for internet-based services.
In short, my experience is you’re just plain wrong. A bunch of expensive and competent accountants hired by my various employers agree that you’re wrong.