Yes, taxes are dull but luckily we make it super easy for you to handle.
You have the tools inside your account to easily collect, record and report your sales taxes. We even take the pain out of reporting any EU digital sales, which are subject to the VAT Mini One Stop Shop (VAT MOSS) since January 2015.
We have also compiled a list of key facts to help you navigate through the complexity of the VAT MOSS.
- From 1 January 2015 the VAT rules for place of supply changed in the EU for sales of digital services from businesses to consumers.
- The law applies to “automated digital services”. That’s basically anything downloadable or digital including electronically supplied broadcasting, telecommunications and e-services.
- No matter where you are based as a seller, you have to pay VAT in any EU buyer’s country at that country’s VAT rate – even if you aren’t in the EU and charge EU buyer VAT at their local rate.
- The law applies even if you sell one item for 99c
- To prove where the buyer is, you need to collect two non-contradictory pieces of information which you have to store for at least 10 years.
- If you are based in the EU, you may sign up in your country of origin. If you are outside the EU, you will have the option of selecting a country of your choosing.
For more details about the EU regulations/VAT MOSS, take a look here.