VAT Compliance Required Email
VAT Compliance Required Email
Author
Discussion

jpringle819

Original Poster:

734 posts

269 months

Tuesday 12th September 2017
quotequote all
I have received an email from a company I bought some software off on 19/04/2016 stating that they should have charged be VAT on my digital download and they would now like me to pay the VAT. The company is American and the transaction was for $12.99, they want me to pay an extra $2.60 or provide a VAT number.

I am a bit reluctant to pay as it was 18 months ago, I used the software once and it didn't do what I needed it to do. What are my options? I was thinking I could just ignore it or supply any VAT number.

AB

20,516 posts

225 months

Tuesday 12th September 2017
quotequote all
Ignore

Eric Mc

125,709 posts

295 months

Tuesday 12th September 2017
quotequote all
Ignore.

If they have to pay VAT to HMRC, they will need to deduct it from the money you originally paid them. You have no obligation to pay them anything extra.

On now account supply them with a VAT number that is not yours. That would be considered to be aiding and abetting fraud.

Grandad Gaz

5,281 posts

276 months

Tuesday 12th September 2017
quotequote all
I had something similar albeit a company in this country. It turned out their business was going down the pan so they tried to get a bit of extra money in before the administrators moved in.

jpringle819

Original Poster:

734 posts

269 months

Monday 18th September 2017
quotequote all
I have contacted them and pointed out that they were responsible for collecting the VAT at the point of purchase, they replied saying they knew that and that they were basically relying on loyal customers to support them by paying them back.

SantaBarbara

3,244 posts

138 months

Monday 18th September 2017
quotequote all
Where are they based?

Who do they pay the VAT to?

jpringle819

Original Poster:

734 posts

269 months

Monday 18th September 2017
quotequote all
SantaBarbara said:
Where are they based?

Who do they pay the VAT to?
They are based in the US and from 01/01/2015 they should have been collecting VAT on digital services sold to members of the EU https://www.gov.uk/government/publications/vat-sup...

mickytruelove

426 posts

141 months

Tuesday 19th September 2017
quotequote all
surely as a "loyal customer" they would absorb the £2 odd and accept they made a mistake in their own accounting.

deckster

9,631 posts

285 months

Tuesday 19th September 2017
quotequote all
jpringle819 said:
I have contacted them and pointed out that they were responsible for collecting the VAT at the point of purchase, they replied saying they knew that and that they were basically relying on loyal customers to support them by paying them back.
I would thank them for letting me know the extent of their incompetence and unwillingness to take responsibility for their own mistakes, and for the warning not to do business with them again. It's one thing being a bunch of muppets, but being a bunch of muppets that expects other people to mitigate their cockups is a clear indication to steer clear.