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 · 2026-07-01 Wed 18:23 UTC ·
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Vending machines can't be used by thousands of people from differing tax jurisdictions at once
[−]BadBadJellyBean · 2026-07-01 Wed 18:44 UTC ·
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Airports could potentially be such a place but I admit that this is a bit contrived.
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.
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.
Most countries then have a "personal exemption", where consumers are exempt from paying taxes on a certain value of goods.
I’m not against taxes to be very clear. Tax something else.
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.
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.