Ask HN: How do you handle VAT / Sales Tax accounting as B2C SaaS?

If you’re not making at least $1 million a year — don’t worry about this yet.

I know that sounds glib but I firmly believe that the rise of “merchant of record” startups like Paddle with large outbound sales teams has scared the bejeezus out of a whole generation of founders.

Oh the US way… just break the other countries laws who cares.

This is highly dangerous. Like you made 500k in sales you are still liable for those 100k taxes it doesnt matter if you didnt get it from your customers. In EU this is pretty automated check - if you sell to any bussiness they will have to have it in their tax return.

It’s not America’s fault that Europe strangles their companies with red tape.

The main thing is to just get started, start growing, and then you can figure all of this stuff out.

If China passes a law that if one of their citizens visits your site, it's illegal to say anything the Chinese government disagrees with, are you going to comply?

I do not give a single fuck that some foreign jurisdiction decided to pass some law that insists I collect and remit money on their behalf, just because one of their citizens decided to come to my server, in my country, and give me money. If the EU doesn't want its citizens coming to my website and buying things, they can take it up with their citizens. Or they can block my website, or come up with some kind of trade agreement with my country to enforce it. Until then, it has fuck all to do with me, despite your protestations to the contrary.

I'm going to continue ignoring random laws from random countries that have no enforceable jurisdiction over me, and it's incredibly wishful thinking to imagine anyone will (or even can) do anything about it.

Comparatively, EU VAT is less complex than the US thing, as it's on a country rather than a county basis, so I'm not sure how the EU is messing up here. That being said the rules for rates are complex but unless you're selling lots of different products that's unlikely to be an issue.

I do agree with you on the keep growing advice but if you're getting a bunch of EU sales, it's worth complying to some extent.

So you would rather have internet where countries can block websites?

Its not the visit thats the issue but by accepting their cards you actively get into contract with them. You are doing business in that country. As a bussines owner i am sure you know that.

You do you but it would be quite sily defense. Playing dumb claiming its the peoples fault instead of changing that supported countries list in Stripe.

Also lets not forget this is special case with digital products where using something like Paddle completely solves it.

The systems are way crazier with physical products and there is no easy merchant of record solution.

This seems more like arrogance that for some people some nations are beneath them (even though they gladly take their money).

Its not Europes fault Americans want to sell there without respecting local laws.

I’ve entered into no contract with the German government just because Hans decides to punch in his credit card number into my website.

What I'm saying might be a silly defense to you or an EU attorney, but again, I don’t need to care unless you have some way of enforcing your inane ideas that declaring jurisdiction over me makes it so.

I’m not saying you should never pay taxes, but are you seriously worried about little guys making under a million a year? Internet based companies are not using your roads or calling on your firefighters or getting protection from your police, and since the time I wrote that post the largest companies in the world have saved like a billion dollars using Irish tax shelters.

Let little guys be. The deck is stacked against ever hitting a million+. They are not a threat to your way of life.