Clickbank now charges VAT ???

10 replies
Last night I bought an ebook from Clickbank and was charged the VAT tax on top of the ebook's price. I've bought in the past from Clickbank but don't remember having to pay the VAT. What's up with this :s Is this tax only being charged in EU countries, or is it all over the world?
#charges #clickbank #vat
  • Profile picture of the author RichardF
    I seem to remember them always charging VAT but you can lie about your location to get around it. And yes VAT is normally added on for customers in the EU.
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  • Profile picture of the author bluebrain
    Well this is weird, I just found a receipt from few months ago and there was no tax on that one. I guess they must've just figured out that my country is member of EU lol.
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  • Profile picture of the author Syed Raza
    Its not new dear you have to pay VAT if you are in EU !

    But you can avoid being charged by changing the location when purchased
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  • Profile picture of the author Paul Tai
    Lol, I switched to Stripe = Instantly raised my income by 7%

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  • Profile picture of the author Kate Davies
    You would only be charged VAT on products and services from UK or other EU suppliers. Maybe when you've bought products via Clickbank in the past, it has been from US or other non-EU sellers - you wouldn't have been charge VAT on those purchases.
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by Kate Davies View Post

      You would only be charged VAT on products and services from UK or other EU suppliers.
      No - sorry, Kate: this isn't how it it works.

      When you buy from ClickBank, you're buying from an US corporation, which is the retailer. The location of the "vendor" (i.e. the product's manufacturer/creator) isn't relevant. ClickBank itself, being a retailer, is really the vendor.

      The VAT is determined by the customer's location, not by the location of the product's manufacturer.

      .
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      • Profile picture of the author Kate Davies
        Oh thanks for the update, my mistake. I was under the impression that the customers location was due to be deemed as the 'point of supply' as from 1st January 2015 for the delivery of digital services.

        Seems like I need to do some more research on that then.

        Thanks.
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        • Profile picture of the author Alexa Smith
          Banned
          You're right that there are EU changes coming in, though, regarding buying digital products.
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