Quote:
Originally Posted by _Richard_
that being said, what legal ramifications do you think could occur from not collecting and submitting the VAT? is it possible for the EU country in question to sue in our courts? or would it be something as simple as blocking the site in question for the country?
i was mystified and a little concerned when i was told i needed a VAT to simply do contracting work
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Yes, you can be sued in your court by foreign country or company or by similar entity. Supposing that there is a treaty about it (like US has with Finland). I suppose that there is such treaty between individual EU countries and also between EU and USA (and Canada) level.
EU and individual countries are just starting to enforce this VAT thing, so possible actions are still uncertain. But can include being sued in court, blocking site, etc.
Example about treaty with Canada:
"Government of the Republic of Finland and the Government of Canada,
Desiring to make in order to prevent double taxation in force of the agreement and the prevention of fiscal evasion, have agreed as follows"
https://www.finlex.fi/fi/sopimukset/...003/19600003_2