I think the EU made a really good computer system with the VAT, it’s way easier than sales taxes accros state borders.
For curious people: every business entity has a VAT number. VAT has to be paid to the customer’s country (for individuals), the computer system tells you the country rate when you establish the bill. When it’s time to pay, you tell your own government how much you collected for each country and give them the loot. And the countries settle their VAT bills at the state level.
Your red tape doesn’t grow with the number of countries you did business with. And there is no sneaky “you opened a tax nexus here, because you looked at me funny, and now you need a local accountant to sort it out”.
For curious people: every business entity has a VAT number. VAT has to be paid to the customer’s country (for individuals), the computer system tells you the country rate when you establish the bill. When it’s time to pay, you tell your own government how much you collected for each country and give them the loot. And the countries settle their VAT bills at the state level.
Your red tape doesn’t grow with the number of countries you did business with. And there is no sneaky “you opened a tax nexus here, because you looked at me funny, and now you need a local accountant to sort it out”.