UK VAT charged but invoice shows Dropbox's Irish VAT number

[manarh]

UK VAT rules require a valid UK VAT receipt if charging UK VAT.  Failure to do so it reportable to UK GOV, see https://www.gov.uk/hmrc-internal-manuals/vat-trader-records/vatrec6040

A valid UK VAT receipt will show the VAT being charged (which dropbox is doing in the online automatic invoice for me, win!) AND will show dropbox's UK VAT number (which dropbox is not doing in the online automatic invoice: it shows the Irish VAT number despite charging UK VAT -- most people at dropbox seem confused that if you change from Irish VAT being charged to UK VAT being charge you should also change the VAT number being quoted from Irish VAT to UK VAT, doh!)). I can understand it's impossible to quickly correct the webapp to issue correct VAT but the team are not even willing to give calrification in chat -- I've asked for that as I figure the chat transcript woudl then count as a weird manual but valid VAT receipt. No luck. I've been told I need to report the issue here if I want to complaint and get a resolution. I guess the alternative is to raise a complaint with HMRC UK GOV to note that dropbox is breaking UK VAT rules.

Has anyone hit this issue and found better luck in getting dropbox to follow UK VAT rules?

[Mark]

Hi @manarh 

Another UK VAT registered business here.... however, I've always taken it to be that I am paying an Irish registered subsidiary of Dropbox rather than a UK one - hence the name shown at the top is Dropbox Ireland. Same as Microsoft for example. 

As I'm not on a Business plan I cannot actually see a VAT line on my invoice (as it isnt charged - its only on Business products). Is the VAT charge 20% or different? I believe Ireland charge 23% for example. 

[manarh]

My invoice shows VAT @20% and dropbox support have confirmed I am being charged 20% because I'm in the UK (i.e. I'm paying UK VAT).

[xyz66]

Hi Manarh & others.
has anyone reported DB to the uk vat authorities? Any joy in getting the uk law upheld?
i pointed out the uk vat law to Dropbox in both 2022 & 2023, but they repeatedly dodged the issue & I gave up after phoning them & chat messages & emails. I am a vat registered private individual in England. DB both ignored some of my messages & fobbed me off with irrelevant replies to others- see example below.

Hi Dropbox

I require a UK, not an Irish VAT receipt.

please provide this within the next 5 days & also confirm you have received payment in full.

For 20% UK Vat to be charged, you have to comply with the request for a UK Vat number/ Vat invoice upon request legally.

Otherwise the English law says to pay me back the VAT charged. thx for assistance & understanding. I must be far from the only customer who has this issue with your poor quality billing.  It could save you $1000's in time & costs, if you put multiple different countries VAT numbers on the bottom of your invoices, like some firms do.

regards

Sam

Zoe, 2022, PDT:

Hi there,
Thank you for reaching out to Dropbox Support. My name is Zoe, and I am a member of the Dropbox team.
I understand you are contacting us about this account, VAT exempt for the invoice. I am happy to look into this for you and assist with your request.
Your account shows as a Plus account downgraded from a Business account.
I understand the frustration that this is causing and I really wish I could help further.
However, 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.
I’m sorry for any inconvenience.
Please let me know if you have any other questions.
I look forward to your response.
Kind regards, Zoe at Dropbox 

[xyz66]

Thx for the update. However uk Hmrc vat inspector who I spoke to many years ago, said that HMRC will only accept a uk vat number & not an Irish vat number. This rule has since been strengthen by new legislation due to the brexit agreement. But I’m still not getting a uk vat invoice from DB support;

Dropbox International Unlimited Company 
 

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