[gamblor956]

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.

[Mirioron]

Does that one stop shop have reasonable VAT minimums yet?

[gamblor956]

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?

[Mirioron]

>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.

[gamblor956]

We're talking about 2 very different things.

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.

[Mirioron]

1000 euros sounds so incredibly low that it might as well not exist. I'm actually amazed how poorly that's thought out.

[gamblor956]

There is a huge difference between 1000 euros and 0 if you're selling into a country from elsewhere.

The threshold is high enough to not impact incidental foreign sellers but low enough that it's not worth the costs of creating new sales entities to evade VAT compliance.