Ask HN: Small EU SaaS providers, how do you deal with VAT compliance?

Re:Ask HN: Small EU SaaS providers, how do you deal with VAT... by adamwi on Friday August 19, 2016 @02:43AM (#12318335)

We are currently looking into this question as well, it does not seem that complex as we first expected. But would be great to compare notes, our current understanding below.

My current understanding for selling services if company located within EU (we are in Sweden)

- If customer is outside EU: No VAT charged ("reverse charge")

- If customer is inside EU and has VATID: Verify VATID, no VAT charged ("reverse charge")

- If customer is inside EU and do NOT have VATID: Apply VAT % for country where customer is located, charge VAT, pay VAT through MOSS system in country where your company is located

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Re:Ask HN: Small EU SaaS providers, how do you deal with VAT... by tonyedgecombe on Friday August 19, 2016 @11:07AM (#12320539)

Aren't you supposed to get a second confirmation of location, such as the customers IP address?

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Re:Ask HN: Small EU SaaS providers, how do you deal with VAT... by adamwi on Monday August 22, 2016 @05:23PM (#12339553)

Good point, I had missed this previously.

It seems that there exist a number of categories of services and each has its own rules for determining where the customer is located. If the service do not fall within on of predefined the categories the below rule apply, meaning that billing address is not enough and secondary verification is needed. It seems that most Saas service fall under the below rule. [0]

Where the digital services are supplied other than in the circumstances listed above, the business making the supply must obtain and keep 2 pieces of non-contradictory information to support and evidence the member state where the customer is normally located.

[0] https://www.gov.uk/government/publications/vat-supplying-dig...

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Re:Ask HN: Small EU SaaS providers, how do you deal with VAT... by atmosx on Sunday August 21, 2016 @11:06AM (#12331155)

Not from my experience. Many stores allow to set a different country as shipping address too (e.g. Amazon UK).

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