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artmanjam1's avatar
artmanjam1
Collaborator | Level 8
8 years ago
Solved

B2B Plus Plan VAT and invoice

I'm a (non Irish) EU VAT registered customer. Thereby the VAT 'Reverse charge' applies, which means I shouldn't be charged VAT. I subscribed a Plus Plan and have been charged VAT from Dropbox. Mor...
cancellations
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  • Jay's avatar
    Jay
    8 years ago
    Hi there, our Plus subscription is a product for personal use rather than a business product, so we are obliged to charge tax on it in certain jurisdictions. We are also unable to exclude this from your payment. 
     
    Dropbox Plus invoices are created in such a way that we cannot adjust the billing information displayed. 
     
    As you use your Dropbox Plus subscription as a business, you may want to change your account name to your business name as described here.
     
    You might be able to use this invoice in your account to claim tax back from your tax authority but unfortunately we can’t exempt your account from tax or refund the tax paid.
  • Jay's avatar
    Jay
    8 years ago
    I’d recommend at this point to write to our support team directly for further assistance, as they have more access to the relevant toolset and the necessary access to your account details.
Jay's avatar
Jay
Icon for Dropbox Community Moderator rankDropbox Community Moderator
8 years ago
I’d recommend at this point to write to our support team directly for further assistance, as they have more access to the relevant toolset and the necessary access to your account details.
artmanjam1's avatar
artmanjam1
Collaborator | Level 8
8 years ago

I opened a ticket for more than two weeks now.

Let me say the provided 'answers' are nothing more than what I found around here, copy/paste of what's displayed on Dropbox site, which means vague and false statements.

Still waiting for a detailed answer to my question:
Why does Dropbox charge EU b2b customers VAT and which EU VAT rule do they refer to do so?

I've been asked by mail to accept a 'Best Answer'. I didn't get any answer to my question, nore best, nore good. I'm still awaiting for a detailed reply to my simple question I'll be pleased to mark as 'Best answer' as soon as it's a real answer.

  • jmouritsen's avatar
    jmouritsen
    Explorer | Level 4
    8 years ago
    I have the same question! I love Dropbox and it’s user-friendliness, I was so surprised to learn that they are making this so hard for their customers.
    From what I can understand I would never be able to legally pay for a Dropbox Plus, through my company (assuming they charge Irish VAT), unless I afterwards seek tax returns from Ireland. Which would be a ridiculous lot of work, for such a small amount.
    If I subscribe to their Business tier, I would wave to wait for it to be renewed, to get tax exemption. 
    That is such a shady practice. 
    • Mark's avatar
      Mark
      Icon for Super User II rankSuper User II
      8 years ago

      artmanjam1 "Why does Dropbox charge EU b2b customers VAT and which EU VAT rule do they refer to do so?"

      It doesnt if you use the B2B product. You, however, are not using a B2B product you are using a consumer one which means it is under a different remit. It really is that simple. 

      jmouritsen

      You can pay for it via your business (I do easily). It isnt illegal at all. Businesses can purchase anything from anywhere. It is no different to the tea/coffee etc. I've just purchased in Tesco for a course I'm delivering this week. 

      Simply pay for the product as you do every other single one (like you would on Amazon, Microsoft.com, GoDaddy etc.) and then put the invoice in to your accountant and they'll sort it. 

      • artmanjam1's avatar
        artmanjam1
        Collaborator | Level 8
        8 years ago

        Mark
        'You, however, are not using a B2B product you are using a consumer one which means it is under a different remit.'

        This is pure imagination and surrealistic. Not one single company is allowed to state its own rules about VAT. Being a 'consumer' or 'business' intended product is a marketing affair. Nothing to see with the law. The rules apply on any product. And you didn't really answer to my question btw.

        So please provide a real and detailed answer :
        "Why does Dropbox charge EU b2b customers VAT for Plus Plan and which EU VAT rule do they refer to do so?"

        Several weeks already and nobody to properly answer to this.

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