Quote:
Originally Posted by neilmarr
Good luck to new Kindlers. Happy reading.
Just a wee thing; mentioned above is Amazon 'collecting' VAT (Value Added Tax) for UK sales. It ain't that simple and honest-to-goodness. Amazon said that the increased price of books bought in the UK 'includes' VAT. See the subtle difference?
As Amazon itself demonstrated when it recently withdrew 1984 etc from Kindles, you do not 'buy' a book, you 'licence it'. This means that it's a 'service' rather than a 'purchase'. The UK VAT rate on services is 6%, not the 19% Amazon is stinging you for.
Into whose pocket does that extra 13% go, I wonder.
Neil
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I'm confused. I thought the standard rate for VAT in the UK was 15% (rising to 17.5% next year when the current reduction expires). When did it increase to 19%?
Regarding the goods/service argument, wasn't this decided by the EEC in a Directive (77/388EEC Annex L). I don't think it's up to Amazon to decide unfortunately.
I think that if Amazon are outside the EEC and supply goods to a non-VAT registered individual or company within the EEC, Amazon are required to collect in the VAT and account for this to the national customs office. If they didn't Amazon would get a big bill at the end of the year.