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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. More, the invoice is not compliant. I asked for a refund, Dropbox says they don't refund VAT and don't apply changes to an invoice for Plus Plan.

How can it be and why Dropbox doesn't follow the law?

  • 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.

15 Replies

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  • 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.

  • Mark's avatar
    Mark
    Icon for Super User II rankSuper User II
    8 years ago

    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.

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

    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'
  • qlithe's avatar
    qlithe
    Explorer | Level 3
    7 years ago
    Yeah i have been wondering about this for a long time.

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