All prices are excluding VAT as VAT differs per country. Growing up means understanding Americans maybe had a point with this one. Lastly, no referral links will be provided.
There are rules and regulations set into place in the EU that the prices including VAT should be the same for consumers. Which means that there shouldn’t be a difference in price even though there is a difference in VAT rate. When dealing with B2B then it is a different story, then you should exclude the VAT.
It is also not the end consumers problem that the VAT rate is higher, same as that it isn’t our issue when the profit tax is higher.
There are rules and regulations set into place in the EU that the prices including VAT should be the same for consumers. Which means that there shouldn’t be a difference in price even though there is a difference in VAT rate
Hetzner definitely shows different price when you change VAT rate. So does Netcup. OVH just shows price without VAT. How would you keep the price same regardless of VAT rate anyway? Then you’d instead have to charge businesses of different countries a different amount essentially, meaning you’re the one discriminating by country. No, you have one price and then different countries add VAT differently to it. Do you have a link to those rules and regulations?
There are, though, cases where it’s OK to just charge your local VAT rate for everyone, rather than the customer’s local VAT rate. I only sell within my own country anyway so I’m not up to date on that - I believe it’s physical goods rather than digital services?
It is also not the end consumers problem that the VAT rate is higher
It sorta is, we’re the only ones paying it in reality?
Between B2B and B2C sales I’d get the same amount of money for the same invoice and have to pay VAT on it either way, which the customer pays to me, but the B2B customer gets a VAT refund and the B2C customer does not. Similarly, on any B2B purchases I make, I get a VAT refund myself. Nobody refunds VAT to me if I buy things as an end consumer.
It has been a while since I read the law’s myself (I stay updated based on the changes from my collegues who are tax specialists). Which does mean that I can also be mistaken, but as far as I know the unfair pricing goes over this https://europa.eu/youreurope/citizens/consumers/unfair-treatment/unfair-pricing/index_en.htm, but yeah it is for B2C mainly and not for B2B. You look at if you are majorly B2B or B2C and list your prices based on that.
It is also hard to do this properly, in the end you cannot ask somebody from a 3rd world country to pay 60 euro for the same (digital) game as somebody in the EU, but in the end the costs for the seller are basically the same.
It sorta is, we’re the only ones paying it in reality?
Well consumers don’t pay it to the tax offices, nor do they do the reporting. It is a tax based on the added value the company brings to the end product. If you buy stuff for 100k excluding VAT and sell it for 200k excluding VAT ou pay 42k minus 21K aka 21K VAT. Which is 21% of your “profit” (in NL). It is just that it is a transparant tax and easily calculated that the end consumer also pays the 21% VAT rate. At the same time end consumers also pay for the profit tax, wage tax and other forms of tax that a company has to pay, but those aren’t as easely calculated.
As an EU national, a trader cannot charge you more when you buy a product or service just because of your nationality or country of residence. Some price differences can be justified if they’re based on objective criteria and not just on nationality. For example, differing postage costs may mean you pay more for delivery in one country than in another.
But they aren’t discriminating by your country of residence. The PRICE that the vendor charges is the same regardless of where you’re from. Your own country charges VAT, through the vendor. That’s on top of the price.
Well consumers don’t pay it to the tax offices, nor do they do the reporting
Yes, but it’s a direct line item when they buy something. And only consumers don’t get it back. It is a tax on consumers specifically.
There are rules and regulations set into place in the EU that the prices including VAT should be the same for consumers. Which means that there shouldn’t be a difference in price even though there is a difference in VAT rate. When dealing with B2B then it is a different story, then you should exclude the VAT.
It is also not the end consumers problem that the VAT rate is higher, same as that it isn’t our issue when the profit tax is higher.
Hetzner definitely shows different price when you change VAT rate. So does Netcup. OVH just shows price without VAT. How would you keep the price same regardless of VAT rate anyway? Then you’d instead have to charge businesses of different countries a different amount essentially, meaning you’re the one discriminating by country. No, you have one price and then different countries add VAT differently to it. Do you have a link to those rules and regulations?
There are, though, cases where it’s OK to just charge your local VAT rate for everyone, rather than the customer’s local VAT rate. I only sell within my own country anyway so I’m not up to date on that - I believe it’s physical goods rather than digital services?
It sorta is, we’re the only ones paying it in reality?
Between B2B and B2C sales I’d get the same amount of money for the same invoice and have to pay VAT on it either way, which the customer pays to me, but the B2B customer gets a VAT refund and the B2C customer does not. Similarly, on any B2B purchases I make, I get a VAT refund myself. Nobody refunds VAT to me if I buy things as an end consumer.
It has been a while since I read the law’s myself (I stay updated based on the changes from my collegues who are tax specialists). Which does mean that I can also be mistaken, but as far as I know the unfair pricing goes over this https://europa.eu/youreurope/citizens/consumers/unfair-treatment/unfair-pricing/index_en.htm, but yeah it is for B2C mainly and not for B2B. You look at if you are majorly B2B or B2C and list your prices based on that.
It is also hard to do this properly, in the end you cannot ask somebody from a 3rd world country to pay 60 euro for the same (digital) game as somebody in the EU, but in the end the costs for the seller are basically the same.
I suspect you mean this one
But they aren’t discriminating by your country of residence. The PRICE that the vendor charges is the same regardless of where you’re from. Your own country charges VAT, through the vendor. That’s on top of the price.
Yes, but it’s a direct line item when they buy something. And only consumers don’t get it back. It is a tax on consumers specifically.