Licence renewal payment

[Mr Lucky]

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]

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]

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.

 

[Martok]

Thanks for the clarification, @Mike.

@Mr Lucky what I said also stands for non-EU companies selling to customers in the EU.