alanback: That makes sense. Any one visiting Canada that buys something with our tax can get that tax refunded back to them by filling out a form. I wondered about that VAT as well.

alanback: It's a VAT applied to me, not to BrainKing users. It is not important where the particular customer is from (especially where it is not mandatory to fill any personal information to the Profile).

Fencer: I type to slow... :P

alanback: alanback: Actually, VAT must be taxed for any UE resident, not just Czech Republic. As to residents from other countries, the supplied services takes place where the customer is established. Therefore I think it should be safe to assume that Fencer could charge no VAT for residents outside the UE.

At least I think that's what the European Directives about VAT state (I'm no expert in the area). But then again, Czech Republic may have gone beyond the directives and added some other rules on their own.

The main problem here, I think, is how to prove without a doubt if someone is a UE resident or not? You're just buying an account, there's not even a mailing address envolved. Getting this information from IP address could be a possibility, I think, but it's a rather obscure system (and not even bullet proof, IP addresses can be spoofed)
That's why most (smaller) businesses decide to charge VAT no matter what. They prefer the simplicity of order processing as opposed to any competitive advantage that lower prices could give them. Usually only larger companies, with clients spread out worldwide and a large volume of business go through the trouble of implementing measures to treat their clients according to their geographic residence.

But then again, like I mentioned, I'm no expert on the matter...

alanback: I asked the same or similar question on 2 January 2008 on this board,but was ignored.....

My understanding is the same as yours....you do NOT have to pay another countries taxes as imposed by them on their own citizens. As I said in my post then....if we do work for someone in the UK for instance they are not and cannot be charged VAT or GST as it is called in Australia...if it a universal tax then that is a different story.

Bernice: But regardless of all that, I think the main point is that no one here HAS to give a confirmed address. If everyone knew that anyone outside the EU didn't have to pay the extra, everyone could just say they lived in any country outside the EU.

So, even if it was true that Americans (or whoever) don't have to pay the "VAT" tax, there is no way currently to prove that you are or are not American (or whoever)

rod03801: I can feel another holiday coming on ROFLMBO :)

Bernice:


Me too!