European tax exemption

[twelvetrains]

Hi, I was about to renew 2 licenses (each $62) and I noticed that I hadn’t entered my Dutch VAT number. But after I did this, there was no deduction of the tax on the two licenses. As a US company, you are not supposed to charge VAT when selling digital goods to a European company. So whey didn’t the prices show up without tax after I entered my Dutch VAT number?

Thanks. 🙂

Kind regards,
Carsten Lund Thomsen

[Nico]

Hi there Carsten,

Thanks for reaching out about this!

I must admit I’m not versed in this type of taxes issues but I’ve asked our manager about it. I’ll get back to you when I have a reply from her 🙂

Best,
Nico

[twelvetrains]

Hi Nico,

Thanks for getting back to me. I’m curious what your manager has to say about it. 🙂

Have a great day!

Best,
Carsten

[Nico]

Hey Casten,

Thanks for the patience while I got an answer!

I’ve been informed that we don’t charge tax to anyone at any time- regardless of whether you have entered a VAT number or not. The price for the renewal is always $62- seeing no difference is correct.

If you have any specific questions please ask them and I’ll do my best to answer them or pass them on to the appropriate person,
Cheers,
Nico

[twelvetrains]

Hi Nico,

Thanks for getting back to me regarding the answer from your manager a while ago.

Just wanted to let you know that you could really get in trouble if European authorities find out about this. Not charging tax to European customers is really not an option.

If I were you guys I would look into it a little bit deeper before someone else does. 😉

Cheers,
Carsten

[Nico]

Thank you very much for the feedback Carsten! I really appreciate your suggestion and will pass it on to make sure we are good on this area 🙂

I’ll go ahead and close out this thread, but if you need help with anything else please don’t hesitate to create a new one and we will be happy to assist you.

Best,
Nico

[Author]

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