EU VAT changes & small software businesses

Matthias Rebbe | M-R-D matthias_livecode_150811 at m-r-d.de
Thu Nov 27 08:23:48 EST 2014


Hi Ian,

thanks for bringing this to my attention. Until today i was not aware  that there will be changes in EU law.

At the moment i use 2 different ways to sell my license keys (which i create with Jacques great tool Zygodact)

1. Paypal from within my website There i am charging 19% VAT. That´s the german tax rate. 

    
2. Kagi. This works very good. What i really love is, that i can use my Zygodact license generation stack. Kagi sent me a Template stack in which i integrated the Zygodact key generation stack.
So all is now working automatically. Kagi is charging the VAT according to the country of the buyer. They take some money for handling. And to be true, it´s a little more than i would pay for Paypal.
But i can live with that, because i have no more work except waiting for my payments from them.

With Paypal i have to add each purchase to my account software/system and i have to create the license manually. With Kagi i just have to add one payment every 3 month (i set it for quarterly payment in my kagi seller account)  to my accounting software.


So for me this means, i just have to stop offering PayPal as purchase option.

Regards,

Matthias




> Am 27.11.2014 um 12:26 schrieb Ian Wood <revlist at azurevision.co.uk>:
> 
> I searched and couldn't find any discussion on the list, and this affects rather a lot of us...
> 
> http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm
> 
> From Jan 1st, business-to-customer software sales within the EU have to charge VAT based on the buyer's country rather than the seller's country, then paying that VAT to that country.
> 
> 
> A question to anyone on the list with a smaller business or selling as an individual - what plans do you have to cope with this?
> 
> Ian
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