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Amazon do not abuse it, they just run shop from an EU country with low VAT rate (Luxembourg) last I checked. And yes the VAT rules really do add alot of overhe
by yc1010 12y ago
Amazon do not abuse it, they just run shop from an EU country with low VAT rate (Luxembourg) last I checked.
And yes the VAT rules really do add alot of overheads on a business and bloat, which companies elsewhere are not subjected to.
I have raised this with Revenue in Ireland (pointing at competitors in US, China etc not held back by paperwork) they ignored it and clarified (I wanted it in writing, I recommend every business has a clarification in writing if they are not sure about the VAT position, to cover their asses) that YES we have to charge 23% VAT to ANYONE from EU29 countries, and 0% VAT for outside.
Tho' nothing was said about how this is to be measured, So I am keeping timestamps, ip addresses and billing addresses when accepting payment for our hosting products.
All in all its just a pain in the rear having to jump thru' this loops with no benefit to my company and plenty of downside :(
- derickr 12y ago"Amazon do not abuse it, they just run shop from an EU country with low VAT rate (Luxembourg) last I checked." They "abuse" it from the point of view from the countries where they don't pay the VAT.... f.e. the UK would like Amazon to pay VAT in the UK, and not in Luxembourg. So this new law is meant to prevent that, but at the same time waltz over small companies.
- yc1010 12y agoUK politicians (judging by recent headlines) also want to leave the EU, or at least threatening to do so if they don't get their way. They might like/want X but they will have to negotiate and endup with X-Y or nothing, since negotiating something as important as VAT while threatening to leave the club is politically counterproductive.
- derickr 12y agoI don't think this law was actually pushed for by the UK. And countries like Hungary where VAT is 27% have much more to gain by it.
- jiggy2011 12y agoVery few UK politicians want to leave the EU.
- glomph 12y agoThey are only threatening because the election is coming up and an anti EU party got a surprising amount of votes in the EU election (still not that many in real terms).
- philjohn 12y agoThey're walking a fine line in "abusing it" though. Why is it correct that a shopper in the UK, who would normally pay 20% VAT on an item if sold from the UK online, or in shop, but pays a lot less because Amazon has the clout and size to setup an operation there? It's similar to the changes a few years ago to the channel islands that was used (and some say abused) by online CD and DVD stores, including some large high-street names. Now, the way this has been implemented, and the speed at which a lot of small retailers will have to change their systems is unfortunate, and the EU have shot themselves in the foot there.
- jiggy2011 12y agoAmazon already charge VAT on items at 20% in the UK.
- makomk 12y agoAmazon not only make it look as though they're selling from countries other than Luxembourg, they actually charge their customers the higher VAT rates of those countries when selling digital goods but only pay the lower Luxembourg rate.
- nraynaud 12y agonot on VAT, there is "no lower" rate on VAT for sellers since it's collected directly for the state. They are having a discount on the profits tax.