In the EU VAT for online products and services is based on the buyer's location not the seller's location. They need to know something about where the buying is to determine the VAT rate and where to send the collected VAT.
I don't know what the rules are for sellers that are inside the EU, but if they are at all like the rules for sellers outside the EU selling to buyers in the EU they are required to collect two pieces of evidence that support their determination of which country's VAT to collect.
Where I work we use the country the person claims they are in from the country drop down on our cart and what country MaxMind says their IP address is from. This works most of the time. If those don't match we look up the first 6 digits of their credit card to see what bank issued it and see what country that bank is in, and if that matches either their selected country or the IP country we go with that. If the bank is in a third country, we look at their email address and if that is at a service that is mostly just serving one of the three countries we go with that.
How would a company that accepts cash and keeps very minimal customer information deal with this?
I don't know what the rules are for sellers that are inside the EU, but if they are at all like the rules for sellers outside the EU selling to buyers in the EU they are required to collect two pieces of evidence that support their determination of which country's VAT to collect.
Where I work we use the country the person claims they are in from the country drop down on our cart and what country MaxMind says their IP address is from. This works most of the time. If those don't match we look up the first 6 digits of their credit card to see what bank issued it and see what country that bank is in, and if that matches either their selected country or the IP country we go with that. If the bank is in a third country, we look at their email address and if that is at a service that is mostly just serving one of the three countries we go with that.
How would a company that accepts cash and keeps very minimal customer information deal with this?