UK e-book prices to rise from 1st January 2015

[HarryT]

Originally Posted by Fbone

In order to browse and purchase from the UK store one must give a UK address in the payment detail page. Remember geo restrictions.

On behalf of all my fellow British citizens, permit me to thank you for voluntarily paying tax in the UK. It's very generous of you to do so .

[Fbone]

Originally Posted by HarryT

On behalf of all my fellow British citizens, permit me to thank you for voluntarily paying tax in the UK. It's very generous of you to do so .

Well, I haven't yet

In the past it all went to Luxembourg.

[howyoudoin]

Originally Posted by Fbone

In order to browse and purchase from the UK store one must give a UK address in the payment detail page. Remember geo restrictions.

I've purchased items from UK stores with a card and payment address outside the EU.

[DuckieTigger]

Originally Posted by Fbone

In order to browse and purchase from the UK store one must give a UK address in the payment detail page. Remember geo restrictions.

I thought that is the kind of thing (falsifying your address) that the new law tries to prevent? How long until Kobo welcomes everybody in a Luxembourg store if you can find an address ...

[HarryT]

Originally Posted by Fbone

Well, I haven't yet

In the past it all went to Luxembourg.

I don't think that's true, actually. It was the Luxembourg VAT rate, yes, but if you were (or appeared to be) a UK buyer, the VAT would still go to the British government.

[HarryT]

Originally Posted by DuckieTigger

I thought that is the kind of thing (falsifying your address) that the new law tries to prevent? How long until Kobo welcomes everybody in a Luxembourg store if you can find an address ...

I suspect that the geographical restrictions would outweigh the benefits. The whole point, after all, of appearing to be in the UK was to buy books that were only available in the UK.

[pdurrant]

Originally Posted by HarryT

I don't think that's true, actually. It was the Luxembourg VAT rate, yes, but if you were (or appeared to be) a UK buyer, the VAT would still go to the British government.

No. All the VAT went to Luxembourg.

[HarryT]

Originally Posted by pdurrant

No. All the VAT went to Luxembourg.

Interesting - I didn't think it worked that way. Thanks for the correction.

I was under the impression that if your sales to a particular EU country exceeded the VAT registration threshold, you had to register for VAT in that country, and pay VAT to that country for sales there.

[Fbone]

Originally Posted by HarryT

I don't think that's true, actually. It was the Luxembourg VAT rate, yes, but if you were (or appeared to be) a UK buyer, the VAT would still go to the British government.

In that case, you're very welcome. However, my largess may end if the price advantage is no longer present.

[Waylander]

Well, I just checked the UK Kindle store, and there doesn't seem to be that much difference in pricing on the Kindle books on the store or my wishlist, if at all.

[tompe]

Originally Posted by Fbone

In order to browse and purchase from the UK store one must give a UK address in the payment detail page. Remember geo restrictions.

OK, but why do you as a pretend UK person have to pay state sales tax?

[pdurrant]

Originally Posted by HarryT

Interesting - I didn't think it worked that way. Thanks for the correction.

I was under the impression that if your sales to a particular EU country exceeded the VAT registration threshold, you had to register for VAT in that country, and pay VAT to that country for sales there.

You're right that there are thresholds over which you must register in the other country and charge their VAT rate in the destination country for distance selling.

But I didn't think that the sale of digital services counted as distance selling (or didn't use to), since the place of supply was the supplier's location, up until 1st January 2015.

See this note on the new rules:

"From 1 January 2015 there are new place of supply rules for value added tax (VAT) on the supply of digital services by businesses to consumers in the EU.

VAT on digital services will be paid in the consumer’s country, not the supplier’s country. It will be charged at the rate that applies in the consumer’s country."

Especially note the bit in the second sentence about VAT now being paid in the consumer's country, not the supplier's country.

[HarryT]

Originally Posted by tompe

OK, but why do you as a pretend UK person have to pay state sales tax?

Use Tax? In most US states, if you buy a product for use or consumption in your state, you are obliged to pay your state's rate of sales tax on it if you have not already paid the sales tax in another US state.

Of course, many people don't pay the tax, but that doesn't make it any the less a legal obligation to do so.

[HarryT]

Originally Posted by pdurrant

You're right that there are thresholds over which you must register in the other country and charge their VAT rate in the destination country for distance selling.

But I didn't think that the sale of digital services counted as distance selling (or didn't use to), since the place of supply was the supplier's location, up until 1st January 2015.

See this note on the new rules:

"From 1 January 2015 there are new place of supply rules for value added tax (VAT) on the supply of digital services by businesses to consumers in the EU.

VAT on digital services will be paid in the consumer’s country, not the supplier’s country. It will be charged at the rate that applies in the consumer’s country."

Especially note the bit in the second sentence about VAT now being paid in the consumer's country, not the supplier's country.

Thanks. Useful information.

[tompe]

Originally Posted by HarryT

Use Tax? In most US states, if you buy a product for use or consumption in your state, you are obliged to pay your state's rate of sales tax on it if you have not already paid the sales tax in another US state.

Of course, many people don't pay the tax, but that doesn't make it any the less a legal obligation to do so.

Even if you buy from abroad?

Or in this case you lie to the system and say you live in the UK. So how can use tax be charged? The transaction is on UK person buying inside of UK.