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Forum Discussion
Why is VAT charged on foreign country invoices
I am in South Africa but got charged VAT in USA dollars.
Either you need to provide prices including VAT or stipulate that your prices are excluding VAT. I do think this is unprofessional and ...
Jay
Dropbox Community Moderator
Dropbox Community ModeratorHi 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
- Jay
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 look at the other plans and I do not want to change as the current plan I am on is most cost effective for me and my business partner. The issue remains that you charge VAT on a invoice. I would like your South African VAT nr to be reflected on the invoice you share with me otherwise charging me VAT seems unethical.
As Enid is saying:
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
- Jay
At the moment, with Plus plans the only option would be to add it to your VAT ID to your invoices with these steps and then try to reclaim via your tax authorities.
