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Why is Dropbox charging Irish VAT to UK customers?
The UK left the EU to all intents and purposes on 1 January 2021. Businesses providing digital services to Britain from outside Britain are obliged to register for British VAT from that date and ...
Mark
Super User II
Super User II
tmax100 wrote:
Or is it because the service is deemed to take place in Ireland ?
Pretty much yes 🙂
I'm charged VAT now for most services and products I buy online regardless of where they are based. VAT laws have started catching up with e-commerce.
I regret that you are incorrect. The VAT you are being charged by other companies is British VAT as that complies with UK laws on this. It is not VAT charged for the country of supply, but where it is supplied. These companies are supposed to account for VAT to the British authorities.
Dropbox is the same. They should not be charging Irish VAT to customers outside the EU, as it is considered an export from the EU country's perspective, and they should (subject to thresholds and correct VAT registration) be charging UK VAT and including a UK VAT number on their invoices.
