VAT on software purchases in the US from EU

marcel-vossen wrote on 9/27/2014, 3:37 AM

Hi there,

Has anyone else encountered this issue that Sony will charge VAT on all software downloads? I think that if you have a company VAT number, they should not charge VAT since its a business to business transaction?

Comments

ushere wrote on 9/27/2014, 6:58 AM

curiosity - why are you buying from the eu if you're in the us?

from my knowledge of gst (aus vat), you simply claim it back if you're registered to pay it in the first place.

Dexcon wrote on 9/27/2014, 7:11 AM

I think that The Dude is in the Netherlands judging by his web address on his profile (.nl).

John Lewis wrote on 9/27/2014, 7:26 AM

Its a requirement of the EU country
Its nothing new

vkmast wrote on 9/27/2014, 7:41 AM

A couple of SCS KB articles on the subject here and here.

marcel-vossen wrote on 9/27/2014, 12:28 PM

Thanks!
I knew I was not crazy! ;)

Marcel

marcel-vossen wrote on 10/2/2014, 4:30 PM

News on this story....Sony now says they changed the rules and will not refund or sell without VAT...I think they are acting agaist the rules...its just weird because they did it correctly last year.

I called my local tax authorities about this and they told me NOTHING has changed in the international regulations for VAT. Once provided with my VAT number, Sony should deliver the software at a 0% VAT rate , like Sony did in the past too after I asked for it...

This link explains it:

http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm

So my question is: Why did Sony change the rules now?

I am pretty annoyed right now because this VAT discussion is costing me a lot of time, and the limited offer for Vegas 13 has also expired now.

Geoff_Wood wrote on 10/2/2014, 4:58 PM

All transactions including business to business incur VAT (= retail sales tax = GST here in my country), and are claimed back in the business VAT return.

geoff

JJKizak wrote on 10/2/2014, 5:49 PM

My Ohio heating oil bill last year reflected an increase of 130 dollars VA Tin addition to the regular tax. They said they were allowed to pass it on to the customer. (me)
JJK