Tax charged on airlinesim credits

I have just noticed that with Paypal Payment, there is a tax charged on credits purchase. This tax does not affect the (listed) final price,

Descriptions

Current purchase
€11.60
Item total €11.60 Tax €2.20
Total €13.80 EUR
 
BUT ....  as far as I know, buyers form outside of the EU are not (should not be) charged EU-VAT.
 
I am using several European services (VOIP, incoming phone numbers, website hosting, online content subscription service etc.) and they do not charge me European VAT, because the physical and billing address is outside of the EU.
 
I think for non-EU players, AirlineSim should NOT charge VAT (tax) for credits purchases.
 
Would AS team be so kind and check this with their accountants?

I think you will find it’s different country to country based on the country where the company is paying it’s taxes (Germany).

In the UK I can only not charge VAT if I can prove that has been exported another company which has a VAT number. If I export a product to an individual even if they are on the othersise of the world, VAT must be charged. Digital sales are included in that.

Airline sim is based in germany.

Everyone has their hand in your wallet in Germany- don't be surprised that you get taxed to have anything to do with anything german  :)

We have to charge VAT on our sales since we are a German company running an online service from Germany. In practice, buying credits from us is like physically walking into a store in Germany to buy something. There might be ways to get a tax refund for non-Germany/non-EU citizens, but I don't know anything about that.

We have to charge VAT on our sales since we are a German company running an online service from Germany. In practice, buying credits from us is like physically walking into a store in Germany to buy something. There might be ways to get a tax refund for non-Germany/non-EU citizens, but I don't know anything about that.

well for most EU country are same rules

Tax free is limited on 100 euro billing

if you spend 99 euro, no tax refund

if you spend 101 euro, you can ask for tax refund

So rubiohiguey2000

you must buy credits for 100+ euros in one, then you can ask for "mehrwertsteuer" from AS team

We have to charge VAT on our sales since we are a German company running an online service from Germany. In practice, buying credits from us is like physically walking into a store in Germany to buy something. There might be ways to get a tax refund for non-Germany/non-EU citizens, but I don't know anything about that.

Well....EU thinks differently:

http://europa.eu/youreurope/business/vat-customs/cross-border/index_en.htm

This site is operated by European Commission ... so I guess they know what they are talking about.

SERVICES

Countries outside the EU

Selling

If you provide services to customers outside the EU, you do not charge VAT, though you may still deduct the VAT you yourself have paid on your related expenses (goods/services bought in specifically to make those sales).

Edit: formatting

This is the case if you have a "named customer" that you actually send a "real" invoice to. We don't do this, obviously. All we got is an email address which might be fake. As such, and to stick with the image I employed earlier, we treat all customers as if they were "people walking into a store, paying in cash, without providing a name". 

Martin, even a fake email address must have a billing method attached to it… be it PayPal or credit card. Based on the card issuing country or PayPal domicile (both easy to determine), you can designate a customer as within-EU or outside-EU. I know you remit the VAT to the government, but in this case the government of Germany is getting money that does not correspond it :slight_smile:

I agree. please refund the VAT to all concerned players immedialty.. in order to make up for the additional costs (not to mention the time spent on sorting this out rather than developing the game), also make credits more expensive to non-EU players. I only did the math in my head, but maybe if you add... let's say, 19%, it should cover the costs...

1 Like

Yukawa … you are really clueless … who is talking here about refunds?

And who is talking anything about spending time on sorting things out…?

Mine was a simple question with simple and obvious facts stated. I did not demand anything at all, only stated the facts. If somebody wants to implement differentiated billing solution it is not that difficult especially if you are using third party processors as Airlinesim does (both paypal and credit cards). But I must have missed where ai said I expected or demanded something be done about that.

Wait… I get it …you are afraid that you end up paying 19% more than somebody else. Either that or you work for the German tax office.

you are absolutely right. It's 100% about me not wanting to pay more than anybody else and has absolutely nothing to do with me wanting the team to spend their time and efforts on developing the game rather than concerning themselves with billing mechanics and taxation laws.

On internet sales the local VAT of the vendor has to be billed as long as the service is provided in germany too. And we do offer this service in germany on server located here too.

Good. Can I consider myself as a tax-payer in Germany?  :)

Seriously, it's only a trivial amount. Just consider it as part of the purchasing cost would make your day better.

Good. Can I consider myself as a tax-payer in Germany?  :)

Seriously, it's only a trivial amount. Just consider it as part of the purchasing cost would make your day better.

One question for you

Did you ever run company in RL?

Did you have "talk" with IRS service?

One question for you

Did you ever run company in RL?

Did you have "talk" with IRS service?

1. Yes

2. Yes

But I live in a place where there is no VAT  :blush:

1. Yes

2. Yes

But I live in a place where there is no VAT  :blush:

Well lets say example for Croatia (EU)

IRS service employer have IQ 25-50

You can't talk with them, you can only pray God they are in good mood :wacko:

Good. Can I consider myself as a tax-payer in Germany?  :)

Being a firefighter in Germany, I would like to thank you for shouldering a small part of my salary. ;)

being a resident in Germany, thank you for making my life safer ;-)

Where and how do I find the invoice for my credits purchases?

You mean for a commercial entity? Please note that when you do a purchase through self-checkout, you confirm that you are a private entity. If you require it for whatever reason, I can issue you a pro forma invoice for that (please send an email to support@airlinesim.aero). But if you have already made a purchase and need an invoice for a company, especially in the EU or Germany, I’m afraid I can’t help you.