Overseas purchases and VAT

  TopCat® 16:18 03 Dec 2008

Just a small reminder to check the VAT rate applied to purchases online from abroad, especially downloaded software. A few sites I've checked haven't reduced it yet, so it pays to be vigilant before clicking that confirm button. TC.

  lofty29 16:50 03 Dec 2008

Surely overseas purchases are not covered by UK vat rules, except where they are stopped by uk customs at point of entry.

  TopCat® 17:01 03 Dec 2008

No, the EU have for some time now ordered most overseas companies selling to the UK to include the current VAT rate on purchases. I think this edict would apply to other EU countries as well. TC.

  beeuuem 17:20 03 Dec 2008

It depends on the items being obtained.
If you buy a CD,say, from an EU country the VAT rate should be that of the country where the CD is delivered.click here
If you buy a service then the VAT rate is that of the country where the supplier is based.
So when you download software are you buying a physical item or a service?
Argue amongst yourselves!

  TopCat® 17:20 03 Dec 2008

Here's a link concerning VAT on downloaded software and licences from overseas suppliers - click here TC.

  lofty29 20:12 03 Dec 2008

A bit heavy for me, I always thought that VAT if applicable was charged at the rates applying at the point of origin within the EU, well that is what has happened a couple of times when I bought goods from the continent online. And for non-EU is charged along with duty at the point of entry.

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