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Why am I being charged with VAT for Dropbox Plus when I'm in Israel?

New member | Level 2
New member | Level 2

My Dropbox Plus account, billed in UKP £ has VAT @20% added. Israel is not one of the countries/jurisdictions listed as subject to VAT on the dropbox site: 

https://www.dropbox.com/help/billing/tax. 

under heading: Tax on Dropbox by country

Does any one know what the correct application of VAT to Israel users should be?

 

3 Replies 3
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Re: VAT charge - Israel

Dropboxer
Dropboxer

Hey there @Aloni  - how are you today?

As you know, Dropbox collects and remits tax on transactions when required to do so while taxability and tax rate are generally determined by the location of the buyer and seller, and various state and local tax laws.

In regards to your inquiry now, as I wanted to expedite matters further for you, I've located your existing ticket on our system and passed your comments there so we can have all the relevant information under one place. I can see that it's already escalated to a higher level of support so I'd suggest that you waited for an update there (ticket with ID: 8941346). 

While we're at it, what does you billing tab show? 



Walter
Community Moderator @ Dropbox
https://dropbox.com/support


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Re: Why am I being charged with VAT for Dropbox Plus when I'm in Israel?

New member | Level 2
New member | Level 2

What a convoluted process! This is what I have determined.

1) Although I have not been in the UK since 2011, Billing continues as if I were, possibly because I have continued to pay from a UK Paypal account.

2) There is no way of changing the account domicile without essentially closing it and registering again! With resultant loss of backups and deletion options etc.

3) You can't change the billing method to that of a different country and or currency without going through 2 above.

4) None of this can be done other than at renewal. 

5) There does not appear to be any way of cancelling automatic renewals other than to stop payment authorisation. The renewal advisory likewise gives you no option to cancel the subscription.

The entire process is obscure and undocumented. One has to ask if this is deliberately so. Whilst support have been prompt, none of the above issues are resolvable. So if you are changing domicile, beware especially if you lose payment facility in the original country/curency. Bizarre in this day and age!

Highlighted

Re: Why am I being charged with VAT for Dropbox Plus when I'm in Israel?

Dropboxer
Dropboxer

Sorry for any frustration this might have caused @Aloni!

To clear things up a tad, please be aware that if your account is ever downgraded (for any reason), Dropbox will not delete any of your files.

Should your Dropbox folder become over quota all that should happen is that syncing stops. Dropbox will only sync until you hit your quota, so if you are over quota all that should happen is that Dropbox will not sync any new files.

You can also read more about this in our Help Center:

https://www.dropbox.com/help/billing/subscription-promotion-expire

For more context, read below: 

For technical reasons, changing billing country would also change the currency, which is something we cannot currently allow for renewals.

However, if you would prefer to subscribe from a different billing country, you will first have to cancel your current subscription bvy setting it to downgrade on the renewal's date (this can be done any given time until your next renewal) at the following page:

https://www.dropbox.com/downgrade

[In general, you should be able to cancel your subscription or downgrade your account through your account's plan tab at: https://www.dropbox.com/account/plan ]

As mentioned, no files would be deleted, although sync would pause for the time being before you upgrade again. However, it is important to note that cancellation of your subscription will remove any add-ons you may currently be eligible for, including a more extensive version history. I cannot guarantee that we'll be able to reinstate those.

Moreover, you would have to re-upgrade on one of the plans currently available on our website, at the current price which may be more expensive than your current subscription. Here is an overview of our current plans:

https://www.dropbox.com/plans

I'm sorry that we don't have a better solution at this time and I'll pass your comments on to our product team to see if this can be improved in the future. If there is anything else I can do to assist from my end,  just let me know!



Walter
Community Moderator @ Dropbox
https://dropbox.com/support


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