4 ms·
It's the lag on charging tax for imported digital goods. We do in the UK, if you're a VAT-registered business. For example, let's say my business pays $100/mo
by petercooper 12y ago
It's the lag on charging tax for imported digital goods.
We do in the UK, if you're a VAT-registered business.
For example, let's say my business pays $100/month for Web hosting in the US (or even the £40/month I pay to Adobe for Creative Cloud). I then have to "reverse charge" $20 of VAT to my accounts but then also claim back $20 of VAT from the tax authorities.. so it's a net zero result, but we still "paid" it.
I don't believe this applies to regular citizens though, but I could be wrong.. if it does, I know no-one who does it.