April 29, 2019

How do you assign the correct country to a customer? EU VAT MOSS - B2C digital services

Following the EU guideline you need to apply the VAT % of the users country on the sale.

In order to apply the correct VAT %, the EU says you need to have 2 pieces of non conflicting pieces of evidence that match.
Furthermore: “If you offer telecommunications, broadcasting and electronic services, these services will always be taxed in the country where the customer belongs. For a non-taxable person it is the place where he is established, has a permanent address or usually resides.”

For my matching process I will register:

  • IP address
  • Card country
  • Country of the Billing address

Question:
What do you do if the 3 pieces of evidence do not match?

Example 1)

  • IP = US
  • card = Italy
  • country = Spain
  • customer's location = ???

Example 2)

  • IP = Italy
  • card = Spain
  • country = US
  • customer's location = ???

Example 3)

  • IP = Australia
  • card = Italy
  • country = US
  • customer's location = ???

Example 4)

  • IP = US
  • card = US
  • country = Spain
  • customer's location = ???

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