USA companies not charging VAT on B2C sales to EU paid with Bitcoin

[yomboloz]

Hello,
I've seen several big USA companies(100 employees+) that charge VAT on payments paid with a Card or PayPal to EU consumers.
But they do not charge VAT on those same sales if they are paid with Bitcoin. Is there a law/regulation allowing them to not charge VAT on Bitcoin orders or are they simply ignoring the need to pay VAT and doing it illegaly?

 

[CyprusBusiness]

No this is illegal. The EU law does not provide any VAT exemption for settlement of invoices via crypto. I would assume that any crypto transactions that this company makes are not reported to any authority.

 

[yomboloz]

CyprusBusiness said:
No this is illegal. The EU law does not provide any VAT exemption for settlement of invoices via crypto. I would assume that any crypto transactions that this company makes are not reported to any authority.
Click to expand...

Taken straight from their website '' Unlike other payment methods, you don't need to pay VAT while purchasing your products with crypto''

 

[CyprusBusiness]

tomyz said:
Taken straight from their website '' Unlike other payment methods, you don't need to pay VAT while purchasing your products with crypto''
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Crypto is a way of payment and not a separate provision of service to be capable of providing a VAT exemption. As I said before there is currently no VAT exemption under EU law for settling products/services using crypto.

 

[yomboloz]

CyprusBusiness said:
Crypto is a way of payment and not a separate provision of service to be capable of providing a VAT exemption. As I said before there is currently no VAT exemption under EU law for settling products/services using crypto.
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That's what I found from my own research too, and the company does have its own legal team... so I'm thinking how are they getting away with it. They are definitively doing over the minimum tresholds in most EU countries for VAT registration as well

 

[CyprusBusiness]

tomyz said:
That's what I found from my own research too, and the company does have its own legal team... so I'm thinking how are they getting away with it. They are definitively doing over the minimum tresholds in most EU countries for VAT registration as well
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This is indeed wierd and very risky if they are operating in this manner. The EU threshold is €10,000 B2C per annum. This is not per country but applies to sales in entire EU

 

[Dandyline]

tomyz said:
That's what I found from my own research too, and the company does have its own legal team... so I'm thinking how are they getting away with it. They are definitively doing over the minimum tresholds in most EU countries for VAT registration as well
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Probably because it's not enforced. Most NON-EU companies doesn't pay EU VAT.

 

[RealDude]

Dandyline said:
Probably because it's not enforced. Most NON-EU companies doesn't pay EU VAT.
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Source?

 

[avalanche]

RealDude said:
Source?
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What kind of source would you expect to see? Article saying "Don't worry about EU VAT, just ignore it"?

 

[RealDude]

avalanche said:
What kind of source would you expect to see? Article saying "Don't worry about EU VAT, just ignore it"?
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Yes, e.g. from the darknet to the rescue. If there are no sources, where does the supposed knowledge come from? From Vox news?

 

[avalanche]

RealDude said:
Yes, e.g. from the darknet to the rescue. If there are no sources, where does the supposed knowledge come from? From Vox news?
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I suppose you can check smaller US saas companies and see if they charge EU VAT. Unless they use Paddle there's a big chance that they dont charge it

 

[RealDude]

avalanche said:
I suppose you can check smaller US saas companies and see if they charge EU VAT. Unless they use Paddle there's a big chance that they dont charge it
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Do these smaller US SaaS companies have significant sales in the EU?

 

[avalanche]

RealDude said:
Do these smaller US SaaS companies have significant sales in the EU?
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Hard to say

 

[yomboloz]

avalanche said:
I suppose you can check smaller US saas companies and see if they charge EU VAT. Unless they use Paddle there's a big chance that they dont charge it
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Speaking of Paddle, how come there isn't a MoR service like Paddle, for Crypto Payments?

 

[bizman]

Many companies around the globe don't charge VAT even they should do that. It is still difficult for most countries to fight that battle. In a few years I believe they will have they grip on the worlds countries VAT cheaters but until then, forget it.

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