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-   -   European Paypal and Canada Paypal: VAT needed? (https://www.aspkin.com/forums/paypal-talk/120298-european-paypal-canada-paypal-vat-needed.html)

madonna7878 09-20-2018 09:14 AM

European Paypal and Canada Paypal: VAT needed?
 
Hi,
I just wonder if Paypal will ask you to enter VAT ID if you upgrade your account to Business in any European country and you get more than $20k in 1 year on your account?

And What about CANADA? Any VAT ID needed for PAYPAL once you reached CAD20K per year or upgrading your business account?

with 20K I mean the money made from your Online Sales.

Thank you lovely guys

phaz0rz 09-20-2018 10:22 AM

Re: European Paypal and Canada Paypal: VAT needed?
 
No for Canada. I don't know about EU countries.

madonna7878 09-20-2018 10:55 AM

Re: European Paypal and Canada Paypal: VAT needed?
 
Quote:

Originally Posted by phaz0rz (Post 945015)
No for Canada. I don't know about EU countries.

Good to know. thanks! Is it due to some local regulations there or just Paypal rules?

Anyone knowing more about Europe?

phaz0rz 09-20-2018 11:07 AM

Re: European Paypal and Canada Paypal: VAT needed?
 
Paypal only creates tax-based regulations to stay in compliance with the law in the countries they operate in.

Canada doesn't pay taxes to "her majesty" so they don't require a VAT #.

Other's will chime in about EU countries I'm sure. I know at least UK accounts would have receiving limits to overcome.

madonna7878 09-20-2018 11:15 AM

Re: European Paypal and Canada Paypal: VAT needed?
 
Quote:

Originally Posted by phaz0rz (Post 945023)
Paypal only creates tax-based regulations to stay in compliance with the law in the countries they operate in.

Canada doesn't pay taxes to "her majesty" so they don't require a VAT #.

Other's will chime in about EU countries I'm sure. I know at least UK accounts would have receiving limits to overcome.

Oh I see now why Canada is a nice country to live in :d

So you mean in UK, after 20K on Paypal in Sales you will be asked about Tax ID?
So best would be to stay under 20K right?

phaz0rz 09-20-2018 11:54 AM

Re: European Paypal and Canada Paypal: VAT needed?
 
No, that's a USA tax regulation and it doesn't apply to UK accounts. With USA accounts you're required to give a tax ID in order to pass 200 sales and/or $20k in sales per year. If you don't then you would need to stay under $20k and that limit would reset annually.

With UK accounts it's a lifetime receiving limit which doesn't reset every year. I think it's 5,000 Pounds or some kind of European currency.

JamesNorth101 09-20-2018 12:29 PM

Re: European Paypal and Canada Paypal: VAT needed?
 
Quote:

Originally Posted by madonna7878 (Post 945025)
So you mean in UK, after 20K on Paypal in Sales you will be asked about Tax ID?
So best would be to stay under 20K right?

US tax rules just apply to the US

There are different regulations in the UK

madonna7878 09-20-2018 02:12 PM

Re: European Paypal and Canada Paypal: VAT needed?
 
Quote:

Originally Posted by JamesNorth101 (Post 945035)
US tax rules just apply to the US

There are different regulations in the UK

So what are the regulations in the UK?

just_smile 09-20-2018 03:02 PM

Re: European Paypal and Canada Paypal: VAT needed?
 
The EU receiving limits aren't anything to do with vat or tax. It's anti money laundering regulations.

In the UK you have to legally register for vat once you reach the vat limit. Ebay now forces sellers to provide a vat number if you come close to these limits. (£85000 in a rolling 12 month period)

Every eu country with have its own tax rules. Do your research before jumping in.

dan_ebay 09-20-2018 04:58 PM

Re: European Paypal and Canada Paypal: VAT needed?
 
depends where you're selling. Netherlands vat threshold is just 10k euros.

madonna7878 09-21-2018 07:58 AM

Re: European Paypal and Canada Paypal: VAT needed?
 
Quote:

Originally Posted by dan_ebay (Post 945135)
depends where you're selling. Netherlands vat threshold is just 10k euros.

Note that I'm talking about PAYPAL only, not Ebay (which might have other rules for this).


Quote:

Originally Posted by just_smile (Post 945103)
The EU receiving limits aren't anything to do with vat or tax. It's anti money laundering regulations.

In the UK you have to legally register for vat once you reach the vat limit. Ebay now forces sellers to provide a vat number if you come close to these limits. (£85000 in a rolling 12 month period)

Every eu country with have its own tax rules. Do your research before jumping in.


Yes what I was asking, was the VAT Limit in European countries, simply at what time Paypal will require you to register your VAT. Not the anti money laundering regulations, which are around EUR2500 EUR/ £2500 as far as I know.Once you hit these limits, of course PAYPAL will ask you to fully verify.

So my question was about the VAT limit. Any reference where I can find out more about that or someone having more infos?
So based on what you said, for UK it's £85,000? not £20,000?

And Now back to CANADA: I was doing some researches, but I was not able to find any source saying that CANADA is not paying VAT. Where did you see that?

Based on what I see on this link,
https://www.advalorem.ca/en/canada-vat-rates/
http://www.worldwide-tax.com/canada/...-gst-rates.asp
the VAT is between 5% and 15% depending on the region where you live/do your business, which logically means for me, PAYPAL would have here also VAT (GST as they call it in Canada) Limit in Canada?
Please correct me if I'm wrong. Not sure if understood well this Canada stuff.

I understand that each country may have different thresholds or regulations specifying at which turnover levels registration becomes compulsory and required to be linked to your Paypal Account.

So what is the case for Canada?
UK £85,000?
Other european countries? (any source please?)

Cheers

phaz0rz 09-21-2018 08:30 AM

Re: European Paypal and Canada Paypal: VAT needed?
 
I answered your question regarding Canada accounts because I sell on a few of them myself. One of mine has sold over $75k (USD) for the year which converts to almost $100k CAD. I have not been asked to provide any tax information on any of my CA PP's. When I go to pay my selling fees on eBay there is a note about the fees "including HST/GST where applicable." So they may be taking tax off the top in Canada but I'm not entirely sure.

dan_ebay 09-21-2018 10:36 AM

Re: European Paypal and Canada Paypal: VAT needed?
 
Quote:

Originally Posted by madonna7878 (Post 945235)
Note that I'm talking about PAYPAL only, not Ebay (which might have other rules for this).





Yes what I was asking, was the VAT Limit in European countries, simply at what time Paypal will require you to register your VAT. Not the anti money laundering regulations, which are around EUR2500 EUR/ £2500 as far as I know.Once you hit these limits, of course PAYPAL will ask you to fully verify.

So my question was about the VAT limit. Any reference where I can find out more about that or someone having more infos?
So based on what you said, for UK it's £85,000? not £20,000?

And Now back to CANADA: I was doing some researches, but I was not able to find any source saying that CANADA is not paying VAT. Where did you see that?

Based on what I see on this link,
https://www.advalorem.ca/en/canada-vat-rates/
http://www.worldwide-tax.com/canada/...-gst-rates.asp
the VAT is between 5% and 15% depending on the region where you live/do your business, which logically means for me, PAYPAL would have here also VAT (GST as they call it in Canada) Limit in Canada?
Please correct me if I'm wrong. Not sure if understood well this Canada stuff.

I understand that each country may have different thresholds or regulations specifying at which turnover levels registration becomes compulsory and required to be linked to your Paypal Account.

So what is the case for Canada?
UK £85,000?
Other european countries? (any source please?)

Cheers

EU thresholds are here, note that distance selling thresholds are different:
https://www.vatlive.com/eu-vat-rules...ion-threshold/

No idea about Canada


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