They are really not. E.g. i have to use a US business to collect in-game payments because accounting for all the various taxes and VAT is a f’in nightmare.
I did not say tax compliance was easy. But figuring out the rates is a simple table lookup.
Also, using a US business to collect in-game payments no longer lets you avoid VAT compliance if you sell to EU customers. Which is why you can now use an EU VAT compliance "one-stop shop" which does it all for you.
The one-stop shop will work with you whatever your VAT liability is.
If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be...
In that respect, tax is no different than each platform or website having its own API and TOS. We don't make every Facebook and Google use the same API and TOS, so why should we force countries to use the same tax thresholds?
>If you mean do the EU countries have reasonable thresholds, then that's a country-by-country issue. As it should be...
When did they make this change? Because initially when the system started the mini-one-stop-shop did not allow you to use VAT thresholds. That was one of the big points of contention about it.
It sounds like you're talking about a one-stop shop where you get to decide when you want to use it based on your own thresholds. You can certainly do that, it depends on the specific one-stop shop as to how much is manual vs done for you. Some are more technologically advanced than others.
I'm talking about the VAT thresholds at which you're required to collect VAT (and thus would consider using a VAT one-stop-shop). At the time the one-stop shops were introduced, there were no minimum thresholds.
Generally, beginning in 2019, EU members are supposed to have a EU 1000 threshold for requiring VAT compliance. But like all EU rules, this rule requires local implementation and it hasn't yet been implemented by all member states. So in some countries, you need to do at least EURO 1000 of business before needing to deal with VAT compliance...but in others, its still EURO 0.