KVR Audio

Caine123 · Post by **Caine123** » Wed Jul 16, 2014 7:01 pm

im always wondering why some shops with vsts, libs etc. have prices inc. and excl. vat.
recently i wanted to get something off a shop didnt choose germany and had a normal amount without vat then i changed to germany cause i noticed and suddenly the price was 30 dollars more!

and some shops dont make a difference at all?

and what will happen if you purchase a download and state for example africa and dont pay vat for a download?

arkmabat · Post by **arkmabat** » Wed Jul 16, 2014 7:09 pm

The internet and government taxes haven't fully integrated yet. The problem is that essentially we are purchasing in a virtual world, so everybody wants taxes haha. Some states in the USA ask for "Use Taxes" to be paid for online purchases. Others, only if purchased from a company in the same state as the buyer, and other states don't seem to care.

robogone · Post by **robogone** » Wed Jul 16, 2014 7:14 pm

If the buyer and seller are both in the EU, you pay VAT, or at least you should.

And by the way - Africa isn't a country...

thecontrolcentre · Post by **thecontrolcentre** » Wed Jul 16, 2014 7:17 pm

VAT is only chargable in the EU. If you live in the EU you pay it. If you live outside the EU, you don't.

Caine123 · Post by **Caine123** » Wed Jul 16, 2014 7:23 pm

well not all shops charge you with taxtes though if you state you are in the EU. and how do they check if you are really living in south africa or england?

still strange why you should pay taxes for downloads if you buy from an american shop directly. dont understand it.

chk071 · Post by **chk071** » Wed Jul 16, 2014 7:26 pm

If the company is based in the EU, they will charge VAT.

I also wonder how they want to determine your location though. Maybe someone could clear that up.

robogone · Post by **robogone** » Wed Jul 16, 2014 7:27 pm

If they don't charge you VAT, then they may not be based within the EU.

You probably shouldn't ask in a public forum how to avoid paying taxes (which would be the case if you provide false billing information). If you pay by credit card, you can't give a billing address that doesn't match your credit card billing address, so your location would be whatever your credit card says.

American stores should not charge you sales tax if you are outside of the US. If they do, they are collecting taxes fraudulently.

chk071 · Post by **chk071** » Wed Jul 16, 2014 7:34 pm

robojam wrote: You probably should ask in a public forum how to avoid paying taxes

I figure you meant "shouldn't".

bob bobwood · Post by **bob bobwood** » Wed Jul 16, 2014 7:37 pm

Based on experience from my past with UK VAT which is Value Added Tax (though there may be other names for it outside the EU).

In most industries, your professional user that is registered for VAT can claim the VAT back whereas private users not registered for VAT can't.

Then there are some smaller companies that have incomes less than the VAT threshold so they don't charge (or rather collect) VAT at all.

Remember that as VAT is collected by companies on behalf of and for the government, it is of no benefit the company. There may also be laws that require VAT to be shown separately in advertising and pricing.

robogone · Post by **robogone** » Wed Jul 16, 2014 7:38 pm

chk071 wrote:
robojam wrote: You probably should ask in a public forum how to avoid paying taxes
I figure you meant "shouldn't".

Oops, yes...

bob bobwood · Post by **bob bobwood** » Wed Jul 16, 2014 7:39 pm

Asking your accountant isn't illegal though.

robogone · Post by **robogone** » Wed Jul 16, 2014 7:44 pm

bob bobwood wrote:Asking your accountant isn't illegal though.

Especially if you are Gary Barlow...

fmr · Post by **fmr** » Wed Jul 16, 2014 7:49 pm

bob bobwood wrote:Based on experience from my past with UK VAT which is Value Added Tax (though there may be other names for it outside the EU).

In most industries, your professional user that is registered for VAT can claim the VAT back whereas private users not registered for VAT can't.

Then there are some smaller companies that have incomes less than the VAT threshold so they don't charge (or rather collect) VAT at all.

Remember that as VAT is collected by companies on behalf of and for the government, it is of no benefit the company. There may also be laws that require VAT to be shown separately in advertising and pricing.

Theoretically, this could be understandable. Problem is that, in practice, this is a complete mess. VAT is an european tax, but it isn't an european tax. Confused? Look at this: Each country establishes a rate for their own VAT, and it can vary from 15% (Luxembourg) to 25% (Scandinavian countries). In Portugal it's currently 23%. How is this "value added tax"? It isn't - it's just a name.

Companies and professionals are forced by law to charge VAT for sales and services, and to deliver it to the government. Theretically, they balance the VAT they collect with the VAT they pay - but it is just theoretically, becuase, for example, I cannot deduct the VAT I pay if I buy something outside my country - because, since I am a professional, I should NOT pay VAT outside my country - but some sellers sites are not prepared to waive the tax, and force me to pay it.

But it can be even worse. EU is trying to force ALL e-commerce to charge VAT, even if it is from outside EU, in order to protect EU commerce (but how do they protect inside commerce when Luxembourg charges 15%, Germany 17% and Portugal 23% ?).

Question is: What do they do to the tax they charge? They will certainly not deliver it to my government (I doubt). So, the easy answer will be: they will just keep it to themselves. Great, isn't it?

But it seems things will become even worse from 2015 onwards.

Caine123 · Post by **Caine123** » Wed Jul 16, 2014 7:57 pm

i didnt want to ask how to not pay taxes or want to boycott, i just asked myself everytime i buy something from different stores and how they check this at all.

fmr · Post by **fmr** » Wed Jul 16, 2014 9:15 pm

Caine123 wrote:i didnt want to ask how to not pay taxes or want to boycott, i just asked myself everytime i buy something from different stores and how they check this at all.

Either is the IP address from which you are accessing the site (but maybe too sophisticated) or simply your postal address, wich is usually asked, including country.

VAT or no VAT, that is the question!