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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...
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.
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
Super User II
Super User IIartmanjam1 "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.
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.
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.- Mark
I'm based in the UK so things may be slightly different here, but, things are very clearly marked as B2B or consumer.
I cannot, for example, go to any retailer and demand products are none VAT-able just as I have a VAT number unless its specific products within there range. So much so many sites have a totally separate site for Business.
Unfortunately you've been given the answer by Dropbox that they are working to. They wont give more than they already have I'm afraid.
If you are not happy with that or do not want to use the home product and reclaim I suggest, sorry, that you choose another cloud provider.
Mark wrote:things are very clearly marked as B2B or consumer.
Things are not different (until now) in the UK than in any other EU country. The intra-EU VAT rule applies. Once again, the customer status (private or business) determines the relevant rule application, not the product.
And still, you didn't answer my question, maybe you can comment the following.
Here's what's stated on the Irish Revenue site:
'Supply of services to a business (B2B)
For supplies of business to business services (B2B), the place of supply is the place where the business receiving the services is established.
Irish suppliers will not normally charge Irish VAT on services to a business established outside Ireland. Instead, the business customer will self account for the VAT in their State.'And:
'VAT obligations of Irish traders supplying services to business customers abroad
If you are supplying services to a business customer in another European Union (EU) Member State you should do the following:- obtain the business customer’s Value-Added Tax (VAT) number and confirm its validity
- insert the customer’s VAT number on the invoice and retain records of the transaction
- issue an invoice indicating reverse charge will apply
- obtain a letter from the tax authorities if a business customer is a new business and a VAT number is not available'
