Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

EU’s New VAT Rules Could Create a Mess for Startups

techcrunch.com

Post reply on HN
Print view View original

81–90 of 133 posts

Re: EU’s New VAT Rules Could Create a Mess for Startups

#81

Post by Tombone5 »

jasonkester wrote: post #29

Another early xmas present from the EU to all of us US-based businesses. Thanks, I guess. I've noticed several things like this come down the pipe since I moved to Europe and started paying attention. It seems that they just really like to pass legislation to make it harder to run software businesses over here. Not that I'm complaining, mind you. Anything that removes more potential competition from my businesses can…

Well, its only a small token of gratitude for all the things the NSA gave the EU.

Re: EU’s New VAT Rules Could Create a Mess for Startups

#82

Post by raverbashing »

flexie wrote: post #55
MistahKoala wrote: post #47

Earlier quoted context omitted.

> Best solution would be to have a common EU VAT-rate applying to all goods and services. That would appear to fulfil a long-term aspiration of the European project.

Indeed. And if they then put the VAT rate at 0 it would hurt businesses even less ;-)

Consumers pay VAT, not business.

Similar to the sales tax in the US/Canada

Re: EU’s New VAT Rules Could Create a Mess for Startups

#83

Post by Hermel »

wbond wrote: post #16

As someone who sells digital software licenses, this is quite an baffling situation to experience. Currently, I live in Massachusetts, which does not require collecting sales tax on digital goods. According to these new laws, even though I live in the USA, and don't collect any address information for my customers, I now need to: 1. Collect address and IP address information 2. Register with a MOSS somewhere in the E…

I went through all of this with my previous startup. It is tedious, but feasible.

Note that in practice, you probably won't have to fear much as long as your revenue does not exceed a certain threshold. In Germany, for example, the "Bemessungsgrenze" is 17'500€, but I'm not sure if that also applies to your case.

Furthermore, you should also see the positive side: when for example renting dedicated servers from a German hoster, you won't have to pay VAT, so everything is 20% cheaper for you.

Re: EU’s New VAT Rules Could Create a Mess for Startups

#84

Post by Tombone5 »

Is this an opinion piece? I thought techcrunch was a news site, but this is so opinionated without any clear indication of being an editorial I'm not sure anymore.

Maybe its one of those sites where the editorial stance is so brazen in all texts that its best to consider it an opinion magazine.

Re: EU’s New VAT Rules Could Create a Mess for Startups

#85

Post by wbond »

rmc wrote: post #50
wbond wrote: post #33

Earlier quoted context omitted.

The issue is that I am now subject to collecting taxes for a country that I have nothing to do with. I have never set foot in an EU country, I don't choose to sell to EU customers, they just come to my US-based website and pay in USD. I comply with all of my local tax laws. I can be involved with my local government and affect change. I can't do that in the EU. The way this is all written, I'll actually have to do wo…

What legal issues? Will the EU take you to court? Will they direct the (say) UK police force to come to your business and sieze property to pay back debts? This isn't going to happen.

Well, if I choose to visit the EU in the future, I presume I could face issues related to tax avoidance?

Re: EU’s New VAT Rules Could Create a Mess for Startups

#87

Post by wbond »

Hermel wrote: post #83
wbond wrote: post #16

As someone who sells digital software licenses, this is quite an baffling situation to experience. Currently, I live in Massachusetts, which does not require collecting sales tax on digital goods. According to these new laws, even though I live in the USA, and don't collect any address information for my customers, I now need to: 1. Collect address and IP address information 2. Register with a MOSS somewhere in the E…

I went through all of this with my previous startup. It is tedious, but feasible. Note that in practice, you probably won't have to fear much as long as your revenue does not exceed a certain threshold. In Germany, for example, the "Bemessungsgrenze" is 17'500€, but I'm not sure if that also applies to your case. Furthermore, you should also see the positive side: when for example renting dedicated servers from a Ger…

I know it is feasible, but yet another thing to get in the way of me as a single developer trying to actually provide value to my customers. Who knows how many other countries I could be violating tax laws in.

Re: EU’s New VAT Rules Could Create a Mess for Startups

#89

Post by bjelkeman-again »

raverbashing wrote: post #82
flexie wrote: post #55

Earlier quoted context omitted.

Indeed. And if they then put the VAT rate at 0 it would hurt businesses even less ;-)

Consumers pay VAT, not business. Similar to the sales tax in the US/Canada

Actually VAT is paid by every business (with a few exceptions) on the extra value it creates.

http://en.wikipedia.org/wiki/Value-added_tax#Comparison_with...

Post reply on HN