VAT on software

[gadgetgeek]

Hi. Was just about to purchase and download iPhone-PC Converter software to my PC. However just as I was about to pay it added VAT to the order. Is this normal as I have never had to pay for software downloads from overseas before? Am a bit miffed paying VAT as no-one offering similar software via UK and when I can torrent it and get it for free. Happy to pay the company but not our government to pay for their mortgage, tv, spa, sauna.....whoops wrong thread! Thanks for your thoughts.

[rojash]

You live in the EU - you pat VAT on purchases. Doesn't matter whether they are software, hardware, from a shop or from an e-shop.

"Happy to pay the company but not our government". Well, of course, we would all rather not pay tax, but why would you expect to be exempt just because you have Internet access? Maybe you think only poor people who don't have access to the net should pay tax?

[gadgetgeek]

Time to get off your horse I think Rojash. The question was why VAT now, and at 17.5%!, when other software companies don't? Is it already calculated within the price? I wud prefer to pay in a shop direct to a UK based company but no-one does the software that I can find. As for being poor then b careful what u preach for I am well in that category but ask for no hand outs and like to pay my way. It was just a question. If you are quick you may get to watch the news and see wot our governent is spending our money on.

[rojash]

You seem to have misunderstood my reply. I don't know when you last bought software on the Net, but it's been required that companies charge VAT for EU citizens for many years now.

You say you would rather buy direct from a UK company, but if you do, you will pay VAT, just as you are expected to on the Net, so I don't see why you have a problem with it.

The reason I mentioned poor people is that if you had to pay VAT on purchases made in shops, but not on those made over the net, then people without internet access would be unfairly disadvantaged. As those without Internet access tend to be the elderly and the poor, this would mean that (generally speaking) the people least able to afford it would be subsidising the better off.

So the question remains, "why do you think that a purchase should be tax-free, solely because it's made over the Net?"

[gadgetgeek]

VAT is at present 15% not 17.5% as quoted on the website. When I buy goods here the VAT is already included. The 6 Pieces of software I have bought over the net from the US (download only, no hard copy) in the last 3 months have never charged VAT on top. If I go to the states and buy it, from some states, do not charge tax nor would HM Revenue n Customs when I bring it in as under my allowance. However my friend us flying back from the US with the said software on hard disc and no VAT to pay as under his allowance. The part of VAT n the swindling MPs (sorry meant their errors n oversights) was meant to b topical n fun. Never mind, got my software, no VAT to pay and unfortunately no money to a British company or shop as the software wasn't to b found.

[pbeach]

If you are buying software in the EU, and you do not quote a valid VAT number then VAT at the current rate should be added on to the order (15%). This is applicable to all purchases of goods (not services) in the EU (not including the Channel Isles). If you are buying outside the EU Vat is not charged. However you might have to pay duty on the goods if they are shipped into the UK for customs purposes. I believe there is a limit ie VAT free if under �x.xx

[gadgetgeek]

Thanks pbeach. That makes more sense. :-)

[rojash]

... but not quite correct. VAT will be charged at the rate of the country where the e-commerce provider has chosen to register - not necessarily your own country. So, for example, if you buy software from Digital River or any of its subsidiaries, VAT will be charged at 19%, not 15%

[ACtheTROLL]

Is the answer ... some do some don't?

trade generally quotes price ex vat
retail price inc vat

non uk will quote price - regional taxes are then added

as for taxes ... you maybe won't be quite as agin' if you are rushed into a&e or need some other services

having said that ... no crit - anyone who pays for software is to be applauded

[gadgetgeek]

Hopefully to finish this can of worms off..... The tax payer pays me to serve their country. I care not where my taxes go providing it's not the back pocket of politicians who care not where they send me other than foto opportunities. I just wanted to know y some did charge VAT n others didn't. I have wot I wish with software via a US Store rather than a UK one. I do not do torrents (must b a minority!). Not really into the y's n where for's of rates of taxes, was just checking to see if the US site paid the tax!
Thank u one n all.