What customer data do you need to keep when selling electronic goods?

[jkk]

As the title says: What customer data do you need to keep when selling electronic goods? What is the bare minimum?

I would guess that IP, geolocation and customer's specified country is necessary for VAT purposes. Do I need to keep the email as well? Name, surname?

 

[Sols]

It depends on applicable laws.

You can run into payment processing problems if you don't collect enough data. It depends on which processor you use and whether your business uses subscription or one-off payments.

For EU VAT purposes, I can't remember reading specific customer data that is required to collect. Instead, the law is vague and it's up to you to do your best. If you're busted dodging VAT and your system isn't doing what the relevant tax authority thinks you should reasonably have been collecting, they'll take you to court.

For EU, keep in mind GDPR as well. You're only supposed to collect and process as much data as is absolutely necessary, and only for as long a period as is legally required.

 

[CyprusBusiness]

There are SaaS applications that you may use such as Quaderno.

Also please check the below as these will be relevant in your case:

1. One Stop Shop (‘OSS’)

SaaS is considered ‘Electronic service’ under EU Law (and local legislation). The place of supply for VAT purposes of B2C sales (Business to Consumer) is where the consumer resides.

The One-Stop-Shop (OSS), is an online electronic portal, that allows for the simplified implementation of the new Council Regulation (143/2008), under which, the supply of telecommunications, broadcasting and electronic services, to private individuals or non-business customers will be taxed in the Member State of the consumer.

OSS allows taxable persons to avoid registering in each Member State of the consumer andaccount for VAT to other Member States of the European Union. Instead, using OSS a single registration in a Member State will be made and a single quarterly report will be submitted. Payment is also executed at a single point and disbursed automatically to other Member States Tax Offices. Thus, through OSS, the VAT compliance is simplified.

1. Identifying the place of supply of the consumer, please see below:

Where physical presence of the consumer (i.e. a non-taxable person) is not required for receiving that service and you cannot be certain of the country where the consumer is registered, has its permanent address or usually lives, you are allowed to make a presumption based on the information available to you about your customer.

The most commonly used presumption is a general presumption which allows you to identify the location of the customer on the basis of two items on non-contradictory evidence. One item of evidence is sufficient if your annual turnover does not exceed EUR 100,000. This is a general presumption, to be used when none of the specific presumptions presented below applies.

Other B2C presumptions are as follows:

• Supply through a fixed land line – when services are supplied to a customer via his fixed land line, the customer is presumed to be actually located there and you will be able to rely on that.
• Supply through mobile networks – when services are supplied to a customer via mobile networks, the customer is presumed to be located in the country identified by the mobile country code of the SIM card used to receive the services.
• Supply using a decoder – where a decoder or similar device or a viewing card is needed to receive the services, the customer can be presumed to be located where the device is situated or where the viewing card is sent to for use there. It applies only if a fixed land line is not used.

The statements made above relate to consumers within Europe. If sales are also made outside Europe this will need a thorough analysis on case by case.

My team will be able to assist with VAT compliance in case this is required.