alt Hacker NewsTHe problem is what "doing business" means (and what it should mean) for internet companies.
If you're an American company selling your stuff to German users, are you doing business in Germany? What if you don't have a German translation of your site, don't accept Germany-specific payment methods and don't advertise in Germany-specific channels, but still ship there? What if your products are delivered electronically, and you don't apply any IP blocks? What if you IP block Germany, but don't block VPN use? What if you do block VPN use, but still process personal data of German citizens (even without giving them access to your systems)? What if you do everything in your power to stop German users from using your site, but the site is free and VPN detection isn't 100% reliable, so some users do slip through?
Just to be clear, there are no good answers here, and the law (and international law in particular) is wholly unprepared for the realities of the internet.
Replies
The law is not as unprepared as you seem to think.
The law in most countries, including Germany, is very clear: if you're going to sell your products or services to individuals and businesses in those countries, you become subject to the laws applicable to that type of transaction in those countries.
If you don't want to be subject to German law, don't sell products or services to people in Germany.
> stuff to German users, are you doing business in Germany
Yes, and the VAT must be paid. You'd need to have some EU member state registration to do so (and still pay the correct VAT-rate, it's different per country). If it's business-to-business it'd be somewhat different.
>but still ship there
The local folks will have to customs-clear it themselves, pay the import tax AND the VAT. It's doable but very consumer unfriendly and likely won't be doing much business at all.
With the regards to topic - the tax is still very much paid.
> What if you don't have a German translation of your site, don't accept Germany-specific payment methods and don't advertise in Germany-specific channels, but still ship there?
Shipping there demonstrates willingness, that is the sales contract (shipping to the customer address), advertising or localisation don't matter since those aren't a "contract" but the final sale with shipment is. It's quite clear-cut.
> What if you do everything in your power to stop German users from using your site, but the site is free and VPN detection isn't 100% reliable, so some users do slip through?
If you can demonstrate that you had active safeguards to not allow someone in Germany to use your product, and these users had to find workarounds to access it, you are protected.
There are good answers: if you willingly delivery a service or a product to a resident of a country you are subject to its laws.