alt Hacker NewsWho 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?
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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.
Retailers selling for cash typically don't have the same accounting requirements for revenue from cash sales.
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.
Vending machines can't be used by thousands of people from differing tax jurisdictions at once