InstallAware

I'm not sure if IA can explain this (Candice?) but I'll describe what I understand from current UK and EU legislation. In the UK, VAT on most goods was reduced a couple of months ago from 17.5% to 15% as part of the credit-crunch initiative to try and stimulate domestic spending.

If I understand the EU legislation, online software purchases are subject to VAT. I went through the process of seeing what the total purchase cost would be, pending order approval next week, and I noticed the online order included VAT at 19%. Is that the correct tax rate taking into account the recent VAT change to 15% in the UK? I don't know if the 19% is an across-the-board EU tax rate or if the quoted 19% should be changed to reflect what's current in the UK.

Can someone comment on this for me? It does not affect our order process but I'm mindful that a bean counter might question it or want to know why.

This is a question better directed to our ecommerce providers, but we have asked them on your behalf and we'll see what they come back with.

CandiceJones wrote:This is a question better directed to our ecommerce providers, but we have asked them on your behalf and we'll see what they come back with.

Thanks, Candice. It'll be interesting to see what they say.

Please let the customer know that cleverbridge is your e-commerce partner and handles the order and payment process for InstallAware. Since cleverbridge is a German company, by German law we have to charge the German VAT rate of 19% to all EU customers unless they provide a VAT ID or are situated in a VAT exempt area.

Candice, that would explain it. I was hard-pressed to think of any country that taxes its population more than the UK but it seems Germany is one of them. No doubt, you people in the US think you are the most taxed nation on earth.