On Aug 7, 2013, at 4:53 PM, Carsten Bormann <[email protected]> wrote:

> On Aug 4, 2013, at 22:11, John Levine <[email protected]> wrote:
> 
>> At last week's very successful Berlin meeting, the finances were
>> thrown of whack by the late discovery that the IETF had to pay 19%
>> German VAT on the registration fee.  At the IAOC session they said
>> that about half of that is likely to be reclaimed from VAT paid, but
>> the net amount is still a large number.
> 
> I don't get it.
> 
> Given the above, the VAT adjustment is going to cost the IETF ~ 10 % revenue.
> 
> At the same time, the attendance increased by more than that.
> 
> What was thrown out of whack, please?
> 
> Grüße, Carsten
> 
> PS.: As a European attendee, of course I enjoy the ability to make a VAT 
> claim.
> In effect, I'm recovering the VAT that IETF paid on goods and services in 
> Berlin, and that is exactly what the concept of VAT is about.

In effect you're getting a $103.78 reduction in your $650 registration fee. 

>  Raising the price to maintain net revenue at $650 would be disingenuous, as 
> the VAT recovered by the IETF is an additional source of income to the IETF 
> on top of that net revenue.

The VAT paid on the Registration Fees will be about $137,000 USD. 

The VAT we expect to recover is about $65,000 USD after paying fees to a 
service company to recover the VAT. 

Ray
IAD



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