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Posts: 850 | Thanked: 626 times | Joined on Sep 2009 @ Vienna, Austria
#77
Originally Posted by RogerS View Post
When an American company sells software to someone living in the EU, my understanding is that it doesn't require a VAT registration number nor does it owe VAT on the sale.
yes they DO owe VAT, if they're in B2C business. (in B2B the recieving company has to account for it)

"For the non-EU supplier whose EU customers are non-business individuals or organisations, there will now be an obligation to charge and account for VAT on these sales just as EU suppliers have to do."
source

if you're small enough you probably fall under the radar, but since this law is specifically for "VAT on digital services" and there are no exceptions but B2B, it's a risk and could become quite expensive...
 

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