As a company based in EU, we would like to buy a copy of X5 but can't, as online store insists on adding VAT. We have own VAT id and it is legaly required to buy things without VAT and add our countries own VAT to the price.
Any decent online store in EU has an option to buy things without VAT when you supply VAT id, except Corel.
We simply do not want to buy from lousy local distributer as they add nothing but 1-200 € to the price! Corel please fix this!
Agree!!
Ok what is VAT?
VAT = Value Added Tax. It is a progressive tax. i.e.: a farmer grows corn. He sells the corn to a distributer, there is an added VAT to the whole sale of the corn. The distributor now sells the corn to a retailer, for the price wholesaler paid, plus the paid VAT, plus his markup, and plus a (now) new VAT. The retailer, in turn, when s/he sells the corn to a consumer, has to charge another VAT on top of all the rest that has been paid.
Or, in other words, a VAT is an aggressive sales tax, applied at each and every stage of sale from source to end user.
Yes it works so, that VAT you payed on the buying side gets deducted from the VAT you would have to pay on a selling side, so in effect you pay tax just on your added value (or even get some back if your company sold less that it bought) .
On international level items are sold without tax and you have to pay your own countries tax as a buyer. But all this is valid only for companies that have their own VAT ID's. Physical persons pay VAT on purchase, so anyone selling goods internationally must have 2 options, depending on the status of buyer - Corel fails here and has only one option that is suitable for physical persons.
This is not something exotic or hard to implement - this is quite a normal practice in EU, fairly easy to implement as only VAT ID check must be performed and that can be done online. Any decent EU seller has this (inlcuding Amazon, Google etc.).
Regarding purchase from USA or Canada - as soon as we enter our address, VAT is automatically applied. I think this is even illegal (as in that case seller is Corel USA) and Corel could be fined for that
hywelharris said:so its not quite as aggressive as you make it appear.
In the U.S. we pay NO TAX on any items used in the manufacture of or a product we sell. No tax on internet sales we do pay tax on items used for administrative purposes.
Then in PA it's 6%, at 17% why don't they just use a gun and steal it from you?
David Milisock said: Then in PA it's 6%, at 17% why don't they just use a gun and steal it from you?
Here, in California, the sales tax goes from 8.75% to 10.0%, depending in which county the sale is made. (I think the 10% is the upper amount, based upon Los Angeles County....but then I don't read all the tax rates for the various counties, when I file and pay my taxes based upon my sales....)And California is facing a huge deficit.....go figure.
It would be nice to get our sales taxes back down to a decent figure....
hywelharris said: What you failed to mention though Hugh is that every business that pays VAT also claims back the VAT that it pays, so its not quite as aggressive as you make it appear. The end result is that the government get 17.5% (in the UK, different elsewhere) of the final sale price. It still doesn't explain the 100%+ markup on Corel prices in the EU, though to be fair to Corel they are only following Adobe's lead. Companies charge what they can get away with as we all know.
Agree, its not soaggressive in my views either.
VAT in Sweden is also called MOMS.What is that?Well in America, USA you have it too. You may not think so, but you have.You pay taxes all the time. Well at least I do on every trip I have made in the USA.It says different ercantage taxes on everything I buy.In Sweden I am either a VAT registered company or not a VAT registered company.If I am a VAT company it allows me to deduct /write off any VAT I am charged when buying goods and services and everything needed to make my business. And I also HAVE to add VAT on everything I sell within Sweden and sometimes the EU.
VAT? Yes why is Greece having such a bad situation for the moment? They havent payed their taxes for one thing. SO the country is going bankrupt. Almost. They have now increased the VAT on goods and a few things more.
Stefan Lindblad said: In Sweden I am either a VAT registered company or not a VAT registered company.If I am a VAT company it allows me to deduct /write off any VAT I am charged when buying goods and services and everything needed to make my business. And I also HAVE to add VAT on everything I sell within Sweden and sometimes the EU.
In Sweden I am either a VAT registered company or not a VAT registered company.If I am a VAT company it allows me to deduct /write off any VAT I am charged when buying goods and services and everything needed to make my business. And I also HAVE to add VAT on everything I sell within Sweden and sometimes the EU.
Same here. If registered we buy an item with VAT and submit that for a return.
BTW, our rate here is 16%. :(