Why is VAT charged on foreign country invoices

Hey Enid Pretorius, thanks for reaching out to the Dropbox Community.

The tax you pay for your Dropbox subscription depends on the billing zip code or country associated with your account.

You can read more about this in our help center.

Let me know if you have any questions.

The USA does not charge VAT but yet you charge VAT to foreign countries - Are you registered as a VAT vendor in that country?

If so I would like your VAT number so that I can claim the VAT back here in my country

Hey Enid Pretorius, sorry to jump in here, but what plan are you currently on?

Professional 

In that case, you can add your VAT ID to your account following these steps.

Hope this helps Enid Pretorius

Hi 

I have exactly the same question as  @Enid Pretorius.

I am currently on the Dropbox Plus - 2TB plan, I am VAT registered in South Africa and have been unable to claim this VAT back I followed the step to add my VAT number and the ability to enter my VAT details is not available on my profile.

I either need to be able to add my VAT details on this invoice if you charge me VAT or I need to be VAT exempted. This is a retrospective issue that I have been struggling with since 2015 where I have been charges VAT 

Hi Dominique B.3, Dropbox collects and remits tax on transactions when required to do so. Taxability and tax rate are generally determined by the location of the buyer and seller, and various state and local tax laws.

Dropbox's tax ID is included on your invoice. If you’re within a jurisdiction where tax is due you will see the tax as a line item on your invoices and receipts. Please note: Each transaction has two links, one for your receipt and one for your invoice.

As our Plus subscription is a product for personal use rather than a business product, we are obliged to charge tax on it in certain jurisdictions. We are also unable to exclude this from your payment.

You may be able to use the invoice found 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.

Hi Jay

I did correspond with my tax practitioner and without being able to add my VAT nr on to the invoice I am unable to claim that 15% Dropbox add to my invoice for "VAT".

I am really unclear how to add my VAT nr. If it is not possible to add it on the current plan which plan can I use. My business has two employees and we are both on the Dropbox Plus plans. Can you advise me with the two employees what would be the best plan for us where the plan would allow me to add my VAT nr.  

Currently is does look like the plan I am on is still the most cost effective but I am really perplexed how there is VAT on this invoice without allowing me to add my VAT nr

Kind Regards

Dominique

Dropbox Professional and Dropbox Business plans allow you to add your VAT ID directly to your account, as they are for business purposes.

Noted that Dropbox Business plans require a minimum of 3 licenses.

Hi Jay

I did correspond with my tax practitioner and without being able to add my VAT nr on to the invoice I am unable to claim that 15% Dropbox add to my invoice for "VAT".

I am really unclear how to add my VAT nr. If it is not possible to add it on the current plan which plan can I use. My business has two employees and we are both on the Dropbox Plus plans. Can you advise me with the two employees what would be the best plan for us where the plan would allow me to add my VAT nr.  

Currently is does look like the plan I am on is still the most cost effective but I am really perplexed how there is VAT on this invoice without allowing me to add my VAT nr

Kind Regards

Dominique