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]

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

 

[CyprusBusiness]

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]

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]

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]

Probably because it's not enforced. Most NON-EU companies doesn't pay⁤ EU VAT.

 

[RealDude]

Source?

 

[avalanche]

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

 

[RealDude]

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]

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]

Do these smaller US SaaS companies have significant sales in the⁠ EU?

 

[avalanche]

Hard to say

 

[yomboloz]

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.