EU VAT and Tax Compliance

Customers occasionally ask about MXroute's compliance with EU Value Added Tax (VAT) regulations and other international tax requirements. This article clarifies our position on these matters.

MXroute's Official Position

Does MXroute collect EU VAT or comply with similar international tax regulations?

The short answer is no. The longer answer is that this may affect your specific situation differently depending on your location, business structure, and applicable regulations.

Key Considerations

1. MXroute's Business Structure

MXroute operates as follows:

• MXroute LLC is registered in the United States (Texas)
• Our ownership and employees are based in the United States
• We have no legal entities, physical presence, or registered representatives in the European Union or other international jurisdictions
• Our banking, payment processing, and business operations are conducted through U.S.-based services

2. International Tax Responsibility

While MXroute respects the right of sovereign nations to establish tax policies for their citizens and businesses, our position is that:

• We are not subject to direct tax collection obligations for non-U.S. jurisdictions
• We have not been instructed by our payment processors, legal counsel, or U.S. regulatory authorities to implement EU VAT or similar international tax collection processes
• Our focus remains on compliance with applicable U.S. federal and Texas state regulations that directly govern our business operations

3. Customer Responsibilities

As a customer of MXroute, you should understand:

• MXroute does not provide tax advice, and this document should not be construed as such
• The legal and tax implications of purchasing services from a U.S.-based provider may vary based on your location, business type, and applicable local regulations
• It remains your responsibility to determine what tax obligations, if any, apply to your specific situation when purchasing services from international providers
• You may wish to consult with qualified tax professionals in your jurisdiction for personalized guidance

Practical Implications

For our customers, this means:

• We do not add VAT or similar taxes to our invoices
• We do not collect tax identification numbers from international customers
• Our pricing is consistent globally, without adjustments for regional tax requirements
• We do not file tax documentation with non-U.S. tax authorities

Recommendations for Customers

If you are subject to EU VAT regulations or similar requirements in your jurisdiction:

• Consult with your tax advisor regarding your obligations when purchasing services from foreign providers
• Consider whether you need to self-report and remit any applicable taxes in your jurisdiction
• Review your jurisdiction's specific requirements for business-to-business international services

Our Commitment

MXroute is committed to:

• Operating with transparency regarding our tax policies
• Maintaining compliance with the laws and regulations that directly govern our business
• Providing straightforward information to help customers make informed decisions

While we cannot adapt our business practices to accommodate every international tax framework, we respect the need for our customers to understand our position as they manage their own compliance responsibilities.