Thank you very much for such a comprehensive response. That's all true - our payment provider is obliged to charge VAT/GST from the end user and since the tax rate differs depending on the country, the total amount is only visible during checkout.
On Thursday, May 17, 2018 at 8:47:27 AM UTC+3, Jan Thomä wrote: > > Guys, it's really very simple. MLO has contracted a payment provider which > handles all their payment for them (Digital River, IIRC). The payment > provider takes care of collecting and paying sales tax for MLO. If you sell > to a EU citizen you need to collect VAT/GST according to the country where > that citizen lives in (e.g. in Germany it's 19%, in Denmark it's 25%, > etc.). So the payment provider is a registered EU business and as such > collects the tax and pays it to the country where the EU citizen is living. > I would assume that this works in a similar fashion for non-EU countries > like India. This is how things are usually handled with end customers. If > you sell to a business, you can apply the reverse charge procedure where > you issue an invoice without VAT/GST and you need to collect the Tax-ID of > the business you are selling to. Then you print "reverse charge" on the > invoice and that business (as identified by the Tax-ID) is responsible > itself for paying the VAT/GST to the country they are registered in. In > many countries businesses themselves can deduct this VAT/GST from their own > tax so they effectively don't have to pay VAT/GST. > > So if you're a business enter your Tax-ID in the Digital River form (they > ask for this IIRC) and you will pay no VAT/GST and then handle the taxation > side on your end in your country. If you're not a business you will have to > pay VAT/GST everything else would very likely be tax evasion which can get > you in various amounts of trouble depending on the country you live in. > > I agree that it's unfortunate that the price listed on their home page is > without tax, but since the effective price depends on the country you live > in and your status as being or not being a business (plus any country > specific taxation rules) they cannot reasonably print a final price to you > until you are into the ordering process and they have all the information > they need to come up with the effective price. This is just a side product > of how taxation works and IMHO not a bait & switch tactic. > -- You received this message because you are subscribed to the Google Groups "MyLifeOrganized" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at https://groups.google.com/group/mylifeorganized. To view this discussion on the web visit https://groups.google.com/d/msgid/mylifeorganized/9002252e-11f1-4fb3-b427-c7c03689916a%40googlegroups.com. For more options, visit https://groups.google.com/d/optout.
