tnx for info. I didnt know about vat
...kindly explain if this relates to seller being in eu somehow
..or If strictly about buyer residency? 20percent could kill it... maybe gd moves dan to usa or something?
This is what Dan told me in their Chat Support. I can't say I completely understand this. Can anyone clarify this? Being from the US, I'm not very familiar with how VAT works.
ME: "I read on Twitter that you are going to start charging VAT. Is that even true?:
DAN: "VAT will be charged for all Europe-based transactions. Of course, it is entirely up to the seller if they want the buyer to cover the VAT during the purchase or not."
ME: When you say VAT will be charged for all "Europe-based transactions," does that mean specifically if the buyer is from Europe? Or if Dan creates a transaction in Europe? Sorry, just unclear to me."
DAN: "To put it in better wording, all consumers in the EU are charged VAT on the purchase of goods and services. If you are based outside of the EU, VAT will not be applicable."
ME: "Just to be clear, let's use my situation. I am the seller n the US. If a buyer is from the EU, they are charged VAT. Correct?"
DAN: "From now on, the invoice and VAT application for you as a seller is in no way affected by the location of the buyer. From now on, you only trade with us - a registered company in the Netherlands and only our details will be displayed on the invoice. For your buyers, depending on their location, they will pay VAT or not, based on our company details, as they will only see our details as the counterparty to the transaction. Since you are a seller in the US, no VAT will be applied to your transactions."
ME: "It's still not clear. You wrote: "they will pay VAT or not, based on our company details, as they will only see our details as the counterparty to the transaction." If they are in a country that requires VAT be paid, they owe it, right?"
DAN: "That depends on the country they are located in, since VAT will be applied based on our company registration in the EU. If they are a VAT-registered company in the EU, they will not pay VAT. If they are not VAT registered, they will not pay VAT. If they are located in the Netherlands, regardless of their VAT registration, they do pay VAT."