SCS online shop: EU VAT?

megabit wrote on 5/8/2009, 6:31 AM
If I remember correctly, back when I upgraded to V8 I wasn't charged with the EU VAT (I'm in Poland).

Now it's automatically added, and I'd like to ask fellow users from EU: as an Eu-registered business, I can buy VAT-exempt when buying in EU. Also, even if I pay the local (Polish) VAT, it's deductible but I need to have the proper VAT invoice, including my VAT registration number. Obviously, I will not be able to deduct the 15% VAT that SCS wants to charge with for the V9 upgrade... How do you handle this?

AMD TR 2990WX CPU | MSI X399 CARBON AC | 64GB RAM@XMP2933  | 2x RTX 2080Ti GPU | 4x 3TB WD Black RAID0 media drive | 3x 1TB NVMe RAID0 cache drive | SSD SATA system drive | AX1600i PSU | Decklink 12G Extreme | Samsung UHD reference monitor (calibrated)

Comments

Andy E wrote on 5/8/2009, 2:13 PM
Why won't you be able to deduct it?

US companies have started added VAT to goods sold at the EU's behest. If I've been charged it I claim it back.
Aje wrote on 5/8/2009, 4:35 PM
This is new to me too, I live in Sweden.
They call it EU VAT Tax.
I just ordered Veg 9 and payed 25% VAT, a tax rate we have in Sweden!!
Do you have 15% VAT in Poland?
I also have an EU VAT reg number but its no use when you buy from outside EU I think.
/Aje
farss wrote on 5/8/2009, 5:47 PM
I'd suggest you take this up with SCS directly.
They appear to be complying only in part with the EU directive. Some research reveals that other online vendors provide the opportunity for you to enter your VAT registration number and other details. They validate that against the EU's database and if valid they do not charge VAT.

Some protracted discussion and information here.

Personally I cannot understand why the EU has not been taken to task over this "directive". It's of very dubious legality under international law. The implications if this was to become widespread practice are horrendous. Imagine if every country expected every other country to collect their taxes on their behalf.

Bob.
TheHappyFriar wrote on 5/8/2009, 6:25 PM
US companies do this for the same reason almost all internet companies started charging NY sales tax: they're afraid they'll get screwed if they don't, even if they don't NEED to. Similar to the RIAA saying they'll sue everyone, even if you're legit under the law.
musicvid10 wrote on 5/8/2009, 7:55 PM
"Similar to the RIAA saying they'll sue everyone, even if you're legit under the law. "

Sorry to point it out, but the RIAA has stopped filing suits against individuals, has made public announcements to the same effect, and their chief legal counsel has resigned to accept a job as a judge with a state court of appeals.

Just wanted to bring you up to date.
TheHappyFriar wrote on 5/8/2009, 8:24 PM
you don't spend a decade+ saying you're going to sue everyone & then expect everyone to forget that with a memo. :)
farss wrote on 5/8/2009, 8:38 PM
Seeing as how this has drifted into copyright you might find this old article a funny read.

Bob.
musicvid10 wrote on 5/8/2009, 8:44 PM
Uhh, it was a little more than a memo. It was headlines. Sorry you missed it.
Andy E wrote on 5/8/2009, 10:07 PM
I also have an EU VAT reg number but its no use when you buy from outside EU I think.

I think you need to check your VAT regulations. The rules in the UK are that I am not allowed to (and I quote):

reclaim VAT on items that you have bought from suppliers in other European Union (EU) states. You may be able to claim the VAT back from the relevant VAT body in those states.

This is why you can get the VAT deducted from purchases within the EU by entering your VAT registration no (I can't recall an instance when I haven't been able to do this).

However, i can claim back VAT paid elsewhere in the course of doing business regardless of whether this was national or international.



Aje wrote on 5/9/2009, 1:26 AM
Thank you Bob for the valuable link - quite a lot to read.
As I understood are the VAT rules between US and EU unclear and interviewed companies had different ways to handle VAT.
Under this forums support / Customer Service/ ordering from SCS/ Taxes Tariffs and Duties I found this:

"Will I be charged sales tax for my order?
Wisconsin residents will be charged 5.5% state sales tax. Residents of the European Union will be charged the applicable EU VAT on downloadable orders."

I posted my EU ID number to Costumer Service and requested a VAT refund.
I will post the answer here when I get it.
/Aje
megabit wrote on 5/9/2009, 1:29 AM
I wonder what their answer is - please let us know!

AMD TR 2990WX CPU | MSI X399 CARBON AC | 64GB RAM@XMP2933  | 2x RTX 2080Ti GPU | 4x 3TB WD Black RAID0 media drive | 3x 1TB NVMe RAID0 cache drive | SSD SATA system drive | AX1600i PSU | Decklink 12G Extreme | Samsung UHD reference monitor (calibrated)

Porpoise1954 wrote on 5/9/2009, 2:54 AM
I think there is another point that hasn't been mentioned here.

A company can only charge VAT if it has a registered presence in the destination country - otherwise there is no mechanism for the company charging the VAT to pay it to the relevant tax authority. (And if they were collecting the tax but not passing it on to the relevant authority, that would be tantamount to fraud). A large international company like Sony obviously has a presence in pretty much every country.

This is why the company I run can only charge VAT for orders going into the UK - it's the only country that the mechanism exists for us to legally collect the VAT and pay the collected tax to the UK tax authorities. For all the other EU countries, there is no mechanism that exists to enable us to do that - so we ship VAT free to all other destinations and it's between the recipient and their local tax authority as to what, if anything, gets charged in the way of taxes.

Also, my understanding of EU VAT laws (such as it is) is that a company can only reclaim the VAT if it is actually VAT registered.
Mahesh wrote on 5/9/2009, 5:05 AM
It looks as though SCS is charging UK VAT rate of 15%. (All EU states have different rates of VAT). My preorder proforma suggests that my upgrade price, after discount,
is 131.95 + 19.79 VAT = 151.74 pounds sterling.
So this appears to be a UK type proforma
As I am VAT registered, I would treat this as a UK transaction and claim it as normal input VAT. SCS would have to be registered in UK for VAT and hence I can treat this as a normal inland transaction.

Only thing I can see missing is SCS VAT registration details on invoices/ receipts.
So UK resident pays 15% ( to end of this year ) and Swedish resident pays 25%
megabit wrote on 5/9/2009, 7:06 AM
Indeed, my invoice shows the VAT of 22%, which is correct for where I am (Poland). However, for this amount to be claimed back, I need a proper VAT Invoice (with the seller's registered VAT number) - and this is clearly missing.

AMD TR 2990WX CPU | MSI X399 CARBON AC | 64GB RAM@XMP2933  | 2x RTX 2080Ti GPU | 4x 3TB WD Black RAID0 media drive | 3x 1TB NVMe RAID0 cache drive | SSD SATA system drive | AX1600i PSU | Decklink 12G Extreme | Samsung UHD reference monitor (calibrated)

Fotis_Greece wrote on 5/9/2009, 8:24 AM
My friend from Poland, there is a very simple trick that I always do when shopping online (I am from Greece).
Change your country to US (in the settings) and you are done. No VAT (talking about electronically delivered software, not actual shipped).
Porpoise1954 wrote on 5/9/2009, 3:53 PM
"Change your country to US (in the settings) and you are done. No VAT (talking about electronically delivered software, not actual shipped)."

Except then your address would not match the cardholder address for the creditcard transaction...