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I run a business in the Netherlands so I can't comment on the exact rules in the UK, but I can comment on the more general issue based on EU regulation. I have implemented an order processing system for an ISV in the past so I learned a thing or two on this subject. The rules you've quoted apply mostly to domestic transactions. Once your business ...

We ask for a billing address so we can determine whether to apply VAT. After all, there is no way to know where the customer is from other than asking. If the info the customer gives you is wrong, you might end up in trouble if you failed to apply VAT when required, but there is really no way to be 100% sure.

To deduct whatever they purchase from you, the UK company only needs your invoice. In the EU, a EU-registered company is usually required to place their VAT ID on their invoices if they sell to a company that is also in the EU - also, they are required to add the VAT ID of the buyer to said invoice (if the buyer is not in their own country, but in the EU). ...

I asked myself the same questions when I was getting ready to launch my online business as well. I'm no accountant (though I did speak with an accountant, a tax adviser, and my state's department of revenue about this). What I learned is that you don't have to collect sales tax unless you are selling a tangible good (as you already figured out), and if ...

I live in Canada so I can't speak for VAT. However, to sell to Canadian residents, you will not need to charge sales taxes because your business are not located here. If you are still not certain, try to initiate the purchase process of any large digital products like LinkedIn, BaseCamp. and etc. Enter your location as one of the EU countries and see if ...

Ye Standard Disclaimer: IANAL and IANAA Based on the information I can find regarding the European Council's Sixth Directive you may have to pay the VAT: TITLE XII PERSONS LIABLE FOR PAYMENT FOR TAX Article 21 Persons liable to pay tax to the authorities The following shall be liable to pay value added tax: under the internal system: ...

If you become VAT registered in the UK (or anywhere else in the EU for that matter) then you have to :- Charge VAT @ 20% to every sale to customers in the UK Charge VAT @ 20% to individuals or non vat registered organisations in the EU If they are VAT registered you must take their VAT number and you should validate it and you need to submit a ...

You really need a lawyer familiar with EU regulations to get a valid answer to this question. From http://europa.eu/legislation_summaries/customs/l11025_en.htm you can see the definitions of T1 and T2 goods and what your supplier says makes sense at first glance. If your US company buys the goods, then sells them into the EU, they are no longer EU goods, ...

I believe the answer that you refer to is incorrect. I'm a fellow Californian, and can't speak about the UK laws, but in California you do not need to collect sales taxes for intangible goods (software for download). The point is that the UK laws are irrelevant for your business. Her Majesty's Revenue and Customs office has no bearing on you. Their rules ...

The exact answer will depend on your country and it's export rules, however based on UK VAT rules: If selling to Business/Individual in the same country you should apply your country VAT rate if the product is VATable. Ebooks for example are. If selling to Business in the VAT zone[1] but not in your country, you should apply VAT on VATable products unless ...

If you're billing companies in other countries, you do not charge VAT at all, even if VAT registered. However, you do have to fill in a EU Sales form with the taxman every 3 months. You do not have to add VAT onto the invoices, if you're not VAT registered you do not charge VAT and they cannot reclaim it - typically your customers do business with ...

If I read the question correctly, it is your client who is making the sale and receiving the funds directly into their bank accounts. You are essentially a wholesaler and providing fulfillment services. The issue is that your customer (call it XYZ Store) will be responsible for collecting and remitting the sales tax in the USA, not you. Now to attract a new ...

The tariffs for import of goods and products you can find for the most part on the US Customs website: http://www.usitc.gov/tata/hts/bychapter/index.htm Generally speaking there are no additional federal taxation of goods or services sold in the US. There are certain items like gasoline that do have a federal excise tax but normally these get a sales tax ...

Both U.S. and U.K. companies technically owe sales tax (the U.S. equivalent of VAT) when they have a physical presence in a state. For example, if you set up shop in California and you sell to customers in California, you are required to pay sales tax. Amazon has tried to get around this rule by taking out any physical presence in states in which they do ...

The short answer is that in reality it probably doesn't matter. In my experience HMRC are unlikely to argue small 1 pence rounding errors, and they are certainly very common. They are usually pretty prudent in areas such as this. That being said, personally I believe it is safer that the VAT element figures comprising your VAT return reflect those per the ...

Interesting question... you are right - UK tax credits were not devised with the entrepreneur in mind. They are meant to help families and low income workers - but I guess most entrepreneurs go through a stage that matches those requirements! Company setup... you'll have to be careful here - even if you set up an Ltd company and paid yourself a low wage - ...