[JoshTriplett]

A business outside the EU has no obligation to do anything, unless it makes itself subject to EU jurisdiction. Just as you don't have to collect US state sales taxes for any US state unless your company has a legal presence in that state.

That doesn't help you if you're in an EU country, of course.

[zmmmmm]

I have a complex notice written entirely in Spanish that I can't understand, but which with the help of Google translate I have decoded to indicate that some 100 odd euros is being withheld from me as the customer paid for my services and has voluntarily paid some kind of tax on my behalf. I am sure with sufficient effort I can probably find a way to get that 100 euros refunded, but boy, it sure aint worth my time. But I mention it because while you may have no obligation to do anything, you can find oneself in this "withholding" situation if you don't.

[jfoster]

How do you distinguish between that and some form of scam/fraud?

[zmmmmm]

I suppose that's a good point - it would be a remarkably well executed scam, since it had all the account numbers, and details that I use with that client, as well as the actual amount from the invoice I sent them, printed on it. I didn't hesitate to believe it at the time.

[mingabunga]

This is correct. Our payment provider GlobalCollect has passed us on a court ruling from Netherlands to state we don't need to pay any VAT since we're not physically there, even though we do sell there. A lot of payment processors like FastSpring, Avangate and Cleverbridge act as resellers for your products and are therefore obligated to charge and pass on VAT even if your company is not located there.