Change of Sales Policy?

[Chapelle]

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[Burillo]

does u-he lose money if the product is bought through a retailer like JRR Shop, which doesn't charge VAT?

[EvilDragon]

VAT is never u-he's to begin with, so I wouldn't think they're losing.

[Robert Foster]

does u-he lose money if the product is bought through a retailer like JRR Shop, which doesn't charge VAT?

After Buying 4 products you save money on VAT to buy 5th one.
Companies don't benefit from VAT at all - it's quite opposite.

And for most cases if two parties decide to make an business agreement - they both benefit from it / or think they will benefit from it - otherwise voluntary agreement would not occur.

[Urs]

does u-he lose money if the product is bought through a retailer like JRR Shop, which doesn't charge VAT?

We lose the reseller precentage. VAT does not concern us at all.

We hope that the broader exposure of our stuff leads to more sales which in turn makes up for the precentage lost

[cwig]

does u-he lose money if the product is bought through a retailer like JRR Shop, which doesn't charge VAT?

We lose the reseller precentage. VAT does not concern us at all.

But what about this?

https://www.taxamo.com/european-vat-on-e-services/

We cannot stress enough the implications of an EU Council Directive in force from July 1, 2003, which changed the playing field re: charging of VAT.

And yet only a miniscule amount of e-services providers have complied with this tax (less than 1%).

The EU realised that this could not continue. Therefore from January 1, 2015 (new rule here), the EU tax authorities are going to pursue non-compliant US-based e-services companies for avoiding VAT on EU sales.

This is serious stuff but by adhering our advice you can save your company a series of headaches post-2015.

[Urs]

Well, when I said that VAT (or the loss thereof) does not concern us, it's about the actual flow of money. ShareIt pays us VAT on every sale, regardless if done on our website, through JRR's and into whatever country. We hand it through to our tax authorities and ShareIt deducts it from theirs. It's a zero game for us, no matter what. It's a little perk of interest (lol) that sits in our account for a few days, then gets flushed.

Whether or not JRR or any other shop has to comply with EU tax laws, or whether each customer has to declare each purchase with customs (commonly same percentage as VAT), is nothing we can advise on.

(I'll ask our lawyer and see what he thinks)

- Urs