We remit our entire EU taxes to Great Britain, who supposedly pays them out to each country according to our filing. Except some quarters, either they just don't pay everyone, or the other countries get confused and think they haven't paid.
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Then we get emails _often with no valid return email address_, only mailing address, notifying us that _we_ haven't paid. But of course we _have_ paid. So then I have to take it up (somehow) with each individual EU government to explain that it is _Britain_ that hasn't paid.
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This is why destination-based taxes are simply impossible. If governments were paragons of smooth administration, sure. THEY NEVER ARE. The fact that we are considering per-state destination sales tax in the US is _ludicrous_. It will be VAT MOSS times 11,000 if we do.
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Effectively what destination-based sales tax is is a way to ensure that a few large monopolies with huge accounting departments will control all sales on the internet. Because there's no way small businesses can survive if this is what they have to deal with.
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Just think about it for a moment: if all 11,000+ tax jurisdictions in the United States expected you to pay them individually, _how on earth is a 2 or 3 person company ever going to handle that_? And don't say "it will be automated", because that's VAT MOSS and IT DOESN'T WORK.
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We've already seen what an "automated" destination-based tax payment scheme looks like, and it is completely broken.
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Companies don't seem to have an issue with introducing layers of multi-national shell companies.
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