5 ms·

Who do you invoice if, for example, you own a vending machine that sells chips and sodas for cash or contactless? Why couldn’t this be treated the same?

by aianus 3mo ago

tony_cannistra 3mo ago
Vending machines can't be used by thousands of people from differing tax jurisdictions at once
- BadBadJellyBean 3mo ago
  Airports could potentially be such a place but I admit that this is a bit contrived.
  - sofixa 3mo ago
    Not really because the transaction occurs in a specific place with specific tax rules, regardless of where the purchaser is from.
    - deleted 3mo ago
      [deleted]
  - jjmarr 3mo ago
    Airports are such a place. That is why they have duty-free stores that are exempt from taxes so long as you take the goods out of the country. The onus is on the consumer to pay taxes at their destination. Most countries then have a "personal exemption", where consumers are exempt from paying taxes on a certain value of goods.
  - meowkit 3mo ago
    It’s not contrived and starts to touch at the root of the issue: taxes on transactions. I’m not against taxes to be very clear. Tax something else.
mixedbit 3mo ago
Normal vending machine transactions are B2C transactions, so the buyer cannot be a company - cannot pay with company money and cannot deduce the payment as the company cost. I guess, the buyer can take a receipt from a vending machine and ask the vending machine owner to provide a B2B invoice based on the receipt, to make this a proper B2B payment. Can you treat your remote service access as B2C only? Perhaps yes, but then the companies will not be able to use your service, pay from a company bank account and account this as a company cost, only individuals will be able to legally pay. Vending machine is also located in a known physical country, so the owner knows what VAT to apply, the VAT of the country the machine is in. With software services the VAT should be applied based on the country where the buyer is located.
- alexsmirnov 3mo ago
  If I pay for vending machine by corporate card on a business trip, it looks more like B2B
  - samrus 3mo ago
    It is
lelanthran 3mo ago
Retailers selling for cash typically don't have the same accounting requirements for revenue from cash sales. No KYC needed, no counterparty or reciprocal VAT rules, no jurisdiction tax rules, etc. Non-cash revenue has rules attached to it. I agree with GP - this doesn't actually solve any problems I have when recording revenue.

Who do you invoice if, for example, you own a vending machine that sells chips and sodas for cash or contactless? Why couldn’t this be treated the same?

by aianus 3mo ago

Who do you invoice if, for example, you own a vending machine that sells chips and sodas for cash or contactless? Why couldn’t this be treated the same?

tony_cannistra 3mo ago

Vending machines can't be used by thousands of people from differing tax jurisdictions at once

BadBadJellyBean 3mo ago
Airports could potentially be such a place but I admit that this is a bit contrived.
- sofixa 3mo ago
  Not really because the transaction occurs in a specific place with specific tax rules, regardless of where the purchaser is from.
  - deleted 3mo ago
    [deleted]
- jjmarr 3mo ago
  Airports are such a place. That is why they have duty-free stores that are exempt from taxes so long as you take the goods out of the country. The onus is on the consumer to pay taxes at their destination. Most countries then have a "personal exemption", where consumers are exempt from paying taxes on a certain value of goods.
- meowkit 3mo ago
  It’s not contrived and starts to touch at the root of the issue: taxes on transactions. I’m not against taxes to be very clear. Tax something else.

mixedbit 3mo ago

Normal vending machine transactions are B2C transactions, so the buyer cannot be a company - cannot pay with company money and cannot deduce the payment as the company cost. I guess, the buyer can take a receipt from a vending machine and ask the vending machine owner to provide a B2B invoice based on the receipt, to make this a proper B2B payment. Can you treat your remote service access as B2C only? Perhaps yes, but then the companies will not be able to use your service, pay from a company bank account and account this as a company cost, only individuals will be able to legally pay. Vending machine is also located in a known physical country, so the owner knows what VAT to apply, the VAT of the country the machine is in. With software services the VAT should be applied based on the country where the buyer is located.

alexsmirnov 3mo ago
If I pay for vending machine by corporate card on a business trip, it looks more like B2B
- samrus 3mo ago
  It is

lelanthran 3mo ago

Retailers selling for cash typically don't have the same accounting requirements for revenue from cash sales. No KYC needed, no counterparty or reciprocal VAT rules, no jurisdiction tax rules, etc. Non-cash revenue has rules attached to it. I agree with GP - this doesn't actually solve any problems I have when recording revenue.