Re:“I’m in the US – what if I just ignore the EU VAT changes?”
by jkulmala on Thursday December 18, 2014 @02:33PM
(#8769200)
It's not what they pay, it's what they get to reduce. If you purchase supplies etc. you get to reduce the VAT you've paid.
So if you have $0 VAT from EU purchases, but $40 VAT from sales, you pay $40. But if you paid $40 VAT from EU purchases, and have $40 VAT from sales, you pay out $0.
So if you have $0 VAT from EU purchases, but $40 VAT from sales, you pay $40. But if you paid $40 VAT from EU purchases, and have $40 VAT from sales, you pay out $0.