On Jan 1, 2015 new EU VAT (consumer tax) regulations mean that any business selling digital services/products to EU customers must charge tax at the local rate for the purchaser’s country. A USA business must determine & verify the purchaser’s country, store their personal details for 10 years, & establish, charge and remit to that country’s authorities the appropriate VAT. There is no minimum threshold to exclude micro businesses. Not only is the procedure, bureaucracy & changes to website payment processing too onerous & expensive for some businesses to absorb while remaining viable, but the regulations are inadequately detailed, poorly explained & may be applied differently in separate EU countries.
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