Beware of VAT on foreign purchases and sales!
Posted: Mon Apr 21, 2025 5:00 am
The fact of not applying VAT on sales therefore allows us to:
maximize the margin, since, since there is no additional tax, the price applied is lower while the amount collected is entirely (or almost entirely) profit;
manage liquidity more easily, as you do not have to set aside the VAT collected on behalf of the State and you can easily dispose of the money in the cash register.
Of course, there is a downside here too: since the flat-rate taxpayer still pays VAT on purchases, he must consider the latter as a cost, since he cannot pass the buck to anyone else.
undefined
PRO TIP
As we have just seen, VAT is a tax that is paid by the end cambodia email list customer, thanks to the intervention of companies that "collect" it on behalf of the State. With foreign operations, this thing becomes a bit more complicated due to the fact that goods, digital products and some services are subject to VAT in the country of the buyer and not in the country of the seller.
Furthermore, the rules are different for B2B and B2C operations: for the former, the responsibility for paying the tax in the buyer's country is borne by the latter, while for private individuals, the tax must be paid by the seller directly to the buyer's country.
This means that we may find ourselves in the situation of having to pay VAT on purchases from abroad (by issuing a self-invoice and paying via F24) or, even worse, having to pay VAT on sales directly in the country of our B2C customer.
You must therefore pay close attention to who you are selling to and in which country and then consult your tax advisor!
maximize the margin, since, since there is no additional tax, the price applied is lower while the amount collected is entirely (or almost entirely) profit;
manage liquidity more easily, as you do not have to set aside the VAT collected on behalf of the State and you can easily dispose of the money in the cash register.
Of course, there is a downside here too: since the flat-rate taxpayer still pays VAT on purchases, he must consider the latter as a cost, since he cannot pass the buck to anyone else.
undefined
PRO TIP
As we have just seen, VAT is a tax that is paid by the end cambodia email list customer, thanks to the intervention of companies that "collect" it on behalf of the State. With foreign operations, this thing becomes a bit more complicated due to the fact that goods, digital products and some services are subject to VAT in the country of the buyer and not in the country of the seller.
Furthermore, the rules are different for B2B and B2C operations: for the former, the responsibility for paying the tax in the buyer's country is borne by the latter, while for private individuals, the tax must be paid by the seller directly to the buyer's country.
This means that we may find ourselves in the situation of having to pay VAT on purchases from abroad (by issuing a self-invoice and paying via F24) or, even worse, having to pay VAT on sales directly in the country of our B2C customer.
You must therefore pay close attention to who you are selling to and in which country and then consult your tax advisor!