On 5/12/2012 3:25 AM, Pent wrote:
Hopeless communication, I have no absolutely no clue at all what is going to happen or whether it will affect me and no way to find out. Pent
I'm beginning to think that what they're REALLY saying is that before they were either NOT paying the tax they should, or they were doing a US-style tax-is-added-afterward approach. So if you were selling for $1 and there was a 10% VAT, they would be actually charging $1.10, even though the price was $1. (Using dollars for convenience, since my keyboard doesn't have Euro or Pound or other symbols.)
This is just a guess, though, since the communication wasn't clear on what they were doing before.
But NOW, with "inclusive" pricing, they'd be charging $1, but the actual "sales price" would be something like $0.91, with the 10% (0.091) VAT being included in the "list price." So they needed to tell us about it because, in countries where VAT is added to software, we'll be getting less (NET) for a sale at a particular price point.
And I seem to recall that some countries have a VAT that goes into the 30% range for some items; no idea whether this includes software, but if there's a 30% tax in a country, that means you'd be making about 23% less at the same asking price (no, it's not 30% less; trust me, it works out this way). So if you care about the exact amount you're getting, you'll need to raise the price you're asking.
THAT much of the email was clear to me; in any country that charges VAT for software downloads, we'll be getting less money unless we change the prices we're asking. What is STILL not clear is whether those countries charge VAT for software sold internationally -- e.g., if we're US sellers will this affect UK sales?
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