VAT On e-Services

[KM]

Hi -

I have a question on the new VAT On e-Services scheme for non-EU businesses that is not answered on the UK government website http://www.hmce.gov.uk/business/electro ... rvices.htm

Here is my question: If I was (for example) VirtualWidgets Inc of Delaware and I am selling e-services all over Europe and European residents are paying me with their credit cards and I haven't registered with the VAT people....what happens next and what will happen to me?

Thank you.

- George

[iffiso]

Hi,

the problem is that European clients must pay VAT by virtue of European legal provisions (Tax Directive, blablabla). And since the beginning of the year, the new European legislation aims at taxing all the e-services towards European clients for instance. It is always the same thing : if your business is not in a high activity, ok, you can manage, but, if yes, you will strike attention.
Your risk : honestly, I am not sure that the IRS of Delaware shall give informations about your company. Obviously, you will have used nominees.
Remaining at your disposal. see : http://www.iffiso.com