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Licence renewal payment

Mr Lucky

Well-known member
#1
I ust renewed my licences, and the currency is USD (I don't mind that) but at the final page of paypal, I was given the option to choose my card issuers exchange rate or the Paypal exchange rate. It mentioned the currency was that of the vendor's country.

If xenForo is a USA company as stated by Paypal (I thought it was British), then why was I charged VAT?
 

Martok

Well-known member
#2
You were charged VAT because you are in Europe. There's a European directive that requires companies outside the EU to charge VAT on digital goods (the VAT goes to the country that you are on, not to the company).
 

Mike

XenForo developer
Staff member
#3
We are a UK company and if PayPal is saying that the "currency was of the vendor's country", it's wrong though probably a reasonable assumption in most cases. As such, we have to charge VAT.