Euro warning VAT!!

Discussion in 'ten-forward' started by Pilli, Jun 19, 2003.

Thread Status:
Not open for further replies.
  1. Pilli

    Pilli Registered Member

    Joined:
    Feb 13, 2002
    Posts:
    6,217
    Location:
    Hampshire UK
    Please note, as of 1st July VAT will be payable by EU citizens for all software bought on the net - UK 17.5% This is to stop unfair competition for those sellers outside of the EU :mad:
    This, of course, keeps the EuroBureous happy but I still cannot find an EU competitor for programmes such as TDS3, KAV etc. + Many other non euro programmes where there is no competition. :'(

    Ah well, buy it now while you can & at a fair price :D
     
  2. Mr.Blaze

    Mr.Blaze The Newbie Welcome Wagon

    Joined:
    Feb 3, 2003
    Posts:
    2,842
    Location:
    on the sofa
    :D hi Pilli so whats going on?
     
  3. Tassie_Devils

    Tassie_Devils Global Moderator

    Joined:
    May 8, 2002
    Posts:
    2,514
    Location:
    State Queensland, Australia
    LMAO.. Pilli Hi mate, how are you :D

    Now, tell me, how on earth can they enforce it. o_O

    OK, you go to a site, say here in Australia for eg. Order online at TDS's OWN site, pay for it via credit card online, and DOWNLOAD the product. Whalla, it's on your system, you have paid for it online to the main site, sooo how do they collect.

    No way on earth is any software company going to be a "Tax Collector" for those Euro retard bureaucrats, especially online payment.....maybe if a product was actually 'shipped', but even then, are they going to have the gall to look inside every package and specifically look for 'software' to slug them the VAT.

    Talk about greedy.... the whole idea of online is you pay the price "from the country of origin", it's downloaded via the net [which you already pay for via taxes your ISP pays as you have paid THEM], and there is NO 'import/export/handling costs/shipping, etc. etc.' costs associated in this type of transaction.

    The question is: How can it be implemented. Cannot see how, UNLESS they have the VAT police puruse every credit card purchase and take note what's been billed. Hell, that would not surprise me in this day and age. :mad:

    Cheers, TAS.
     
  4. Mr.Blaze

    Mr.Blaze The Newbie Welcome Wagon

    Joined:
    Feb 3, 2003
    Posts:
    2,842
    Location:
    on the sofa
    :mad: wow that sucks but isnt credit card purcheses supose to be confidinthial.

    this dont effect them it effects every one call it a steping stone in the wrong direction
     
  5. FluxGFX

    FluxGFX Registered Member

    Joined:
    Jan 23, 2003
    Posts:
    667
    Location:
    Ottawa/Canada
    That sucks,

    But if the software is bought online and downloaded there's noway they can charge that, unless your credit card issuer adds that fee on your statement after purchase, wich I think they will be doing.
     
  6. root

    root Registered Member

    Joined:
    Feb 19, 2002
    Posts:
    1,723
    Location:
    Missouri, USA
    Seems like you could find what you want on the net and call the phone number usually provided and order by phone.
    As for a credit card company billing a tax, how would they know if it was a phone purchase or an internet purchase?
    It's only a matter of time before every country is dealing with this crap. Nobody in any government can stand to see lost taxes.
     
  7. FluxGFX

    FluxGFX Registered Member

    Joined:
    Jan 23, 2003
    Posts:
    667
    Location:
    Ottawa/Canada
    True credit card issuers can't see what was bought..... but I'm sure they'll come up with something.

    who knows to what extent and lenght will they go ......
     
  8. Primrose

    Primrose Registered Member

    Joined:
    Sep 21, 2002
    Posts:
    2,743
    11. How do you calculate the Approximate Dollar and Euro prices.
    Since we are based in England, all our prices are in UK pounds. When you buy from us we will charge you in UK pounds. For your information we have put against each item its approximate cost in Euros and Dollars.

    The Euro price has been calculated by multiplying the pound price by 1.65. This is an approximate conversion rate. Your credit card company or bank may well charge a slightly different rate and you should contact your bank or card provider should you want an accurate quote.

    The Dollar price has been calculated by first removing any VAT (UK sales tax at 17.5%) and then multiplying by 1.5. Again the multiplier is approximate and you should contact your bank or card provider for an accurate quote. The VAT has been taken off because if we send the goods ordered outside the EU we do not have to charge VAT. We assume that anyone interested in the dollar price lives outside the UK and wants the goods shipped outside the EU.

    The important things to note are, the dollar and euro prices are approximate, we always charge in UK pounds at the time we ship, and that we will not charge VAT if we are shipping OUTSIDE the EU.


    http://www.kultureshock.co.uk/faq.htm#11
     
  9. FluxGFX

    FluxGFX Registered Member

    Joined:
    Jan 23, 2003
    Posts:
    667
    Location:
    Ottawa/Canada
    Current rate of value for GPB to EURO

    1.00 GBP United Kingdom Pounds = 1.43384 EUR
     
  10. Mr.Blaze

    Mr.Blaze The Newbie Welcome Wagon

    Joined:
    Feb 3, 2003
    Posts:
    2,842
    Location:
    on the sofa
    :'(I dont know i get more and more upset seeing stuff like this i wish goverment would stay out of the net except for extream situation that are extramly illigal.

    i see so many thinggs going wrong with this.

    i bet alot of it goes into illigal slush funds for something sounds like a way to mak more money for some one
     
  11. Pilli

    Pilli Registered Member

    Joined:
    Feb 13, 2002
    Posts:
    6,217
    Location:
    Hampshire UK
    Hi Tassie - Good to see you :D
    Not sure how they can enforce it but it is a EU directive & affects all internet services including hosting, ISP, porn, movies, music, drugs etc.
    I believe that the major payment services such as Paypal, Clickbank etc will be forced thorough International banking conventions to automatically add the VAT to your purchase based on which EU country you live in if you are purchasing from ouside of the EU. So in Germany you will pay about VAT at 16%, UK 17.5 Ireland 21.5% etc.
    Obviously many non EU organisations that use other payment methods may not know or care about Euro VAT regulations or directives. ;)
     
  12. Primrose

    Primrose Registered Member

    Joined:
    Sep 21, 2002
    Posts:
    2,743
    The VAT has always been around. :D Why is it so complicalted. The company who sells the product collects the VAT. Now the VAT has been extended to other products. Makes no difference if you go to that country and buy it or do it over the Internet and they are based in that country which requires them to collect it. They add it to their selling price. Your credit card company does not have to do any special calcuation for you. ;)

    So how does this company know where you live if you purchase by a card? Simple. Your credit card number and purchase is tied to a currency of some kind. If it is euro you pay the VAT if it is not you don't. If you have a dispute after the purchase take it up with the seller. If they made a mistake..they will credit you a refund.


    As to what currency conversion rate you will get if you do not purchase in euro from them, does depend on your type of credit card. No one can give you the exact figure on this conversion rate since it all depends on the rate they get at the time of your purchase. How often that varies depends on who issued your credit cards and you can ask them how they calculate that if you wish since you will be paying your credit card bill in your own country currency when it becomes due.

    When I traveled all over the world I even ran into hotels and businesses that would even hold off the charges for billing just to get a more favorable rate of exchange on my credit card purchases. Some times they held off 2-3 months just to make some more $$$. ;) I then just went back to my credit card company and proved to them when the transaction transpired and they credited me back the exchange rate difference. Over a ten year period this amount to well over $10,000 US.

    All of that had nothing to do with the VAT. But it is an example of how you handle a situation if you end up with a dispute.

    I do not expect to get the most favorable rate of exchange you see published some place on those credit card purchases. :rolleyes: The company who issues your credit card is in charge of that..and if you want to know how they calculate that and when and what table they tie it to..ask them or read the fine print for international purchases..and that hold true for paypal or any other similar company who has setup business on the Internet to assist you in your International Purchases.
     
  13. Pilli

    Pilli Registered Member

    Joined:
    Feb 13, 2002
    Posts:
    6,217
    Location:
    Hampshire UK
    Hi Primrose, not sure if you are missing the point. This directive has nothing to do with exchange rates. It is simply to level the EuroBureuo's perceived playing field .
    If you are a reseller in the USA & you sell to a EU country you are not obliged to charge VAT until 1st of July that is. For instance European AOL members have got away without paying VAT because AOL is not Euro based, whereas Jo Blogs ISP UK does have to charge it's customers VAT Therefore it is seen as unfair competition. Same for any other Internet services bought from outside the EU.
     
  14. Primrose

    Primrose Registered Member

    Joined:
    Sep 21, 2002
    Posts:
    2,743
    I did not miss a thing Pilli the exxhange rate fiasco with credit card purchase i posted about is just added bonus info. ;) I know exactly how VAT works and is collected and will be cloected in the future after 1 July. Not only for UK based purchases but also the rest of the EU.

    Unfair?? :(


    Well not in my opinion.
     
  15. Pilli

    Pilli Registered Member

    Joined:
    Feb 13, 2002
    Posts:
    6,217
    Location:
    Hampshire UK
    OK Primrose, sorry if I missed your points. :oops:
    As for fairness, I am not going to make a moral judgement as the various tax ambiuguities that are rife throughout the EU make it almost impossible to make such a judgement.

    In the UK's case it was the Confederation of British Industry that called for the directive & I suppose similar calls were made throughout Europe for the directive to be agreed.

    It will be interesting how the whole VAT collection business will work when dealing with say Russia, USA & Australia. Will suppliers that are based in those countries, for instance, create an automatic click through to a Eurozone page where the VAT is added prior to the credit card being debited?

    No doubt we shall soon see! :)
     
  16. Primrose

    Primrose Registered Member

    Joined:
    Sep 21, 2002
    Posts:
    2,743
    VAT is collected at the point of purchase. That means physical point even as it applies to the Internet. I think you are making it complicated. ;)

    If you are a seller of any product on the internet. It would be best to check with the tax authority which has jurisdiction over your physical Incorporation. If a UK produced product was sold in the United States with funds collected in this country it woud not have VAT added. The selling price of that product could contain US sales tax depending on which state had authority over the business taxing of the company established to make the sales.


    If any European or UK company would try to skirt the issue of charging VAT by having a site to purchase it's product in another country he would be foolish...if those funds would eventually all be sent to that company. But if he has a reseller agreement. Then other laws and codes would apply.
     
Thread Status:
Not open for further replies.