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Doug Nebeker ("Doug")
Did you hear about new The Directive on Consumer Rights in EU + UK?
Do I understand rightly prices on my website should include VAT?
Currently I display price in USD without VAT and I display remark "Prices do not include VAT when applicable."
Is it OK?
Not sure regarding the VAT issue but it's worth linking this press release directly:
Important for us guys are the parts about digital delivery and pre-ticked selection boxes. Worth a read through.
Wednesday, August 27, 2014
> Do I understand rightly prices on my website should include VAT?
Yes, instead of "Price: EUR 19.95 + VAT" you'll have to write "Price: EUR 23.94" (assuming 20% VAT). But AFAIK that has been the case in quite a few EU countries anyway and the directive just unifies this across Europe.
What we do is to raise the end price by an average VAT amount + some fine tuning (19.95 -> 24.95) and make that end price for every consumer the same - no matter what VAT rate they have. So everyone pays EUR 24.95 and we deduct the VAT from that.
You could of course pimp your shopping cart software to pre-calc the prices for every customer's country of origin.
The "+VAT" was how vendor's made it clear it wasn't them stealing from the customer.
Seems our lords and masters are embarrassed by this reality, especially since the "will never, ever increase" 10% became 15% then 17.5% and now 20%...
Thursday, August 28, 2014
VAT rules are complicated, vary by country and are open to interpretation. I believe prices should include VAT if you are selling to consumers. But I'm not an expert on VAT.
I show all my prices including VAT (gross), regardless of currency (Avangate has this option, I am guessing other payment providers do as well). So they pay the same, regardless of VAT due. If they have to pay VAT, then Avangate collects the correct percentage of VAT (and I get less).
Tuesday, September 02, 2014
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