Re: Digital Seller? New EU Digital VAT Affects You
So things just seem to get more complex.
The VAT on digital goods also applies to non EU suppliers, so if you are a US company supplying digital goods to EU customers, you too have to pay EU VAT. In fact this has been law since 2003 (VAT on E-Service Scheme (VoES)). Although for that scheme the VAT rate used was based on where (which VAT locale/country) the supplier registered.
It was problems with that scheme (ie suppliers registering in the lowest VAT % locale) that prompted the move to charging VAT on the customer's locale.
It could be argued that the new scheme isn't really VAT at all, since with physical goods the supplier could reclaim VAT on their inputs.
e.g I buy my stock from someone and pay VAT on that, and then sell the goods on and charge VAT on the sale, I could at least reclaim the original VAT, so my VAT exposure was based on my net profit. (ie: I'd only be required to remit the collected difference, much like local sales tax in the US/Canada.)
With the digital goods VAT, since there is no original supplier (and no original resource to which "value" has been "added"), there's no input-VAT to claim as a credit. It's therefore arguable that it's not really VAT "Value-Added tax" but a simple sales tax.
Still working on how best to address. Given timelines there is unlikely to be core code changes, but we may work with other partners to produce a plugin.
Re: Digital Seller? New EU Digital VAT Affects You
Thank you, thank you, thank you Lat9 and wilt :hug:
It's been feeling like nobody is taking this seriously! AND thank you for clarifying it IS also non-EU stores - here in the UK we are trying to alert people but many just do not think it's something for them to worry about.
I'm part of the UK Group and in touch with the 'euvataction' team if you need any contacts/info.
Are we able to show prices with/without VAT already?
Off to look at your contribution Lat9, as a short-term measure perhaps.
Again, thank you!
Re: Digital Seller? New 2015 EU Digital VAT Affects You
HI.
I'm currently working on a scoping document for code changes necessary to support the EU Digital Seller rules. I'll push a link here once I have made some progress, hopefully by tomorrow.
The idea would be to integrate some stuff that has already been built and add other stuff e.g. reporting.
Just wondering if anyone here has registered on one of the MOSS sites, and what then the MOSS site asks in terms of information for sales.
I also wonder what happens if a supplier already has a vat registration, and then registers for MOSS.
Re: Digital Seller? New 2015 EU Digital VAT Affects You
Hi,
So I have started putting together a document at https://confluence.zen-cart.com/disp...ital+Goods+VAT
I've also created an initial github repository at https://github.com/zcwilt/eu-digital-vat
I doubt very much that we will get anything useful coded before 1st January :(
I'm wondering if those subscribed to this thread would be interested in doing a join.me conference, sometime between the 27th to the 31st, to look at priorities.