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Pod XT modelpack


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Hi

I'm a new user so sorry if this has been answered before.

I live in UK and have just discovered that in order to buy a modelpack I get billed $59 instead of $49. Why do I have to pay extra just because I'm in UK?

Thanks

Dean

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  • 3 weeks later...

 

 

And it's not an EU thing, it's just paying good old UK VAT.

 

Incorrect. A new tax derictive from the EU came on 1st January 2015, which has definitely affected small (known as micro) businesses:

 

An article from before the new laws came into operation:

 

http://www.theguardian.com/small-business-network/2014/nov/25/new-eu-vat-regulations-threaten-micro-businesses

 

A little explanation from a petition:

 

The new EU VAT regulations coming into force on 1 Jan 2015 change the way in which VAT (consumer tax) is charged on digital services - instead of the tax rate being applied according to where the supplier is located, the seller must determine where the buyer is located and apply the relevant local rate of tax to the purchaser.  So that means if you live in Italy and someone in Germany purchases your digital file, you need to pay VAT at the German rate to the German authorities. Just to be clear, that's a total of 75 different tax rates across 28 different markets!

 

What this means for micro businesses is setting up 75 different tax rates on their website. For people who sell tiny £4 sample files, for instance, it's not worth paying for the tax calculation software versus the money received from selling such tiny sums and some have simply shut up shop as a result.

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