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VAT and the digital market

 
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If you live outside the US and buy a physical thing, we just charge the insane shipping costs.   And then any VAT stuff that comes after is apparently dealt with by the buyer when the package arrives.

For digital stuff ...  we used to use the scubbly service.  And then one day the VAT police showed up and took two months of my income and said there was nothing I could do about it.  And all of scubbly closed.  

Apparently, most countries in the world do this VAT thing.  And it is something like 20% to 25%.  And it sounds like you have to fill out a fuck ton of paperwork for every fucking country.  So for a $10 item I would need to add on $2.50 for the tax plus $40 for having to fuck with the tax.   Making the item priced so high that nobody would want it anyway - so it is just easier to not sell digital goods outside of the US.  

If you are angry about this, I suggest that you kick a politician.  

Here in Montana, USA, we have no sales tax.  (nor VAT).  Tax crap is processed once a year with income tax stuff (which, I'm pretty sure, all states also do).

 
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Hi Paul,appreciate the effort you and yours  put in to getting the digital copy of the  Sepp Holzer video.
Here in Australia our version of VAT  is  called gst -goods and services tax.
Amazon has a big Australian presence ,and their prices include the gst.
The SH dvd is unavailable atm.
Thanks again for your efforts Paul  
 
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https://www.accountingweb.co.uk/tax/hmrc-policy/vat-may-be-due-on-charity-donations

HMRC guidance

HMRC has its own VAT Charities manual, which deals with most of the common VAT dilemmas facing charities. Very helpfully, the VCHAR3400 section is titled: When is a donation not a donation?

To directly quote the first two sentences of the section:

“If there is a direct link between the payment and a benefit received by the giver the monies cannot be treated as a donation. As long as it is clear that a person is under no obligation to make a payment in order to receive certain benefits then the payment is usually a donation.”

Meaning of guidance

If the donor paid £100 and the charity planted ten trees in his back garden, this is clearly “a benefit received by the giver”. But in the example of the Better Soil charity, the donor has no idea whether his donation will fund trees planted in Edinburgh, Glasgow or Perth (that’s Perth in Scotland and not Australia) – or even no trees at all. The charity is dictating the course of events. So there is no way that the donor has received any benefit from his gift.



More specifics in the HMRC internal manual: VAT Charities.
 
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