New tax rates in EU, taxation of services world wide

[johu]

As of July 1st 2021 businesses that turned over more than 10,000€ to private EU customers in 2020 have to charge the individual tax rate of the recipients country.

So before, say you ordered from Sweden you were only charged the German VAT of 19%. With the new rules you will be charged the Swedish VAT of 25%.

For services, i.e. Engineering hours or firmware keys I have to charge individual VAT in EU and German VAT in rest of world.

As before, when you have a EU VAT Id I will subtract VAT afterwards.


Fun fact: for every percentage between 17% and 25% there are countries in the EU who implement it Guess how much fun it was declaring all the zones And then there is Hungary who charge a whopping 27%.

I hope I haven't done any mistakes this time.

[EV_Builder]

Drop me a link when you can so I will give it a read.

[johu]

Got the info from my tax attorney via phone