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Comments
Suit yourself ;-). Avoiding tax is a very shortsighted view (and I mean EU VAT here).
This is not true. The US has no such tax treaty requiring US entities to charge or pay any VAT taxes to any EU country. Same goes for any other country with no such tax treaty.
If some country you've never heard of creates a tax tomorrow and neither has the legal authority to require you to pay it or punish you for not doing so, will you start charging or paying it? Do you keep up with laws of 196 countries at all times and follow all of their laws at all times?
Surely you don't as following the law of one country sometimes means breaking the law of another. But if you do, jarlandstan just passed a law requiring all citizens of EU countries to pay 5% income tax to jarlandstan via PayPal, and I expect you will be complying.
I agree to a degree @Jarland, to flip sides, if US govt. would pass a bill requiring us to tax digital services sold to the States, I'd probably comply - if only not to be stopped straight after leaving the plane on the US soil one day when visiting your beautiful country ;-).
Heaving said that, DO is US based and complies with the Digital Services directive with no issues. So does Microsoft, so do many others bigger and smaller players.
Meh, doubt they'd care
Both have legal entities / employees inside the EU.
Good point with employees/assets.
Reality is, the enforcement where it's not already theee, will come one day, and each state willl require the past taxes to be paid. Difference is that when you do it right from the beginning, the Customer pays you this taxes and you pass them over, whereas if you later have to settle the dues and you never charged your Customer - you'll end up paying out of pocket.
I get the point of lack of enforcement, so will stay quiet for now to see if I was right perhaps in a few years :-).
Disagree entirely, and I think that's a bad way to do business. You can't assume that you will eventually be held accountable for not following the laws of a country that you and your business do not reside in. To assume so you would have to assume it across the board. Are you hosting content that violates the law of some highly religious nation? Better get rid of it, you'll eventually be held legally accountable, right?
Any tax treaty requiring past due tax payments, from before the existence of the treaty, to another country would be of negative value to my country's economy and I have full faith that such a thing would not happen. I would absolutely dispute the notion that I should pretend as though such an unprecedented and devastating event would occur.
This underscores the reality here: check with accountants and lawyers, do not listen to advice on the internet. We will all fail you. I just happen to know a thing or two about my rights and obligations
DO is complying with India GST too as they have DC or maybe staff inside India .
*and they're complying with Canadian tax. Inputting Ontario, CA = 13% tax.