Ramifications of not collecting VAT on digital goods sold from outside the EU?

I'm just trying to get a straight answer here.

I'm outside the EU (in Canada). I sell software. Some of my customers live in the EU. If I don't collect VAT, what authority exists that could prosecute me in Canada?

There are plenty of resources online that seem to say I need to collect VAT (I think? The wording is so unclear even "official" pages, I'm not even sure if I need to collect VAT at all)…but seemingly none that say what happens if I don't.

As a side question, for the Canadian/US business owners out there who are selling to EU residents. Are you collecting EU VAT? And if so, how are you going about it? IOSS? Individual member country registration? It seems impossible to get good answers for any of this if you're not selling actual physical goods that require actual physical importation into an EU country.


submitted by /u/wtf_is_vat
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