Deduction of VAT

SLiC

Manuel Great - In the UK (and I guess everyone out of the EU?) will everyone will need the price without VAT as we will be charged import and 20% VAT when you ship it top the UK (its collected by the currier) so you wont need to pay the 21% on exports. I am not sure anyone knows how it works EU- UK right now….who knows, maybe by November it will be sorted!

SLiC

Manuel

Then you have to pay this to the UK Government right (you cant keep VAT charged) ? Or I have to pay the tax ‘again’ on import and I am not sure that is legal…

Manuel

Hi Slic, as we said, it was impossible to handle different tax % of the different countries.
We are obliged to present the VAT in the different regions inside the UE.
For the rest of the cases/coutries, the customer is in charge of customs and other delivery fees.

SLiC

Your price included VAT, I asked the time of ordering and it says so in this thread. You cant just select to not pay the VAT you have taken from UK customers and keep it for yourselves so that UK customers have to pay VAT twice?

That isn’t satisfactory, that means it will be 21% more expensive for customers in the UK than all other customers. Are you planning that the OXI will always be 21% more expensive in the UK than in the EU or just punishing early funders?

I (and I suspect all UK customers) will be very unhappy and the forums will just be full of angry posts which will be a shame when this can easy be resolved for the UK customers that have to pay the same VAT as the EU…most suppliers/music are registered for UK tax in exactly the same way as the EU….they don’t charge 21% more to the UK?!

Please do not penalise your UK supporters just because the UL left the EU….it wasn’t my fault!

SLiC

As was stated earlier, all you have to do is to reimburse me the Spanish VAT (21%) as you will; NBOT be paying this tax for UK exports.

ginfonic

The same for Russia, USA and the other non-EU countries. We’re, actually not being EU citizens, not obliged to pay EU VAT. We pay customs fee and VAT home importing goods. So you, as UK friend said before, force us to pay VAT twice: here in Spain and there home. I think it’s a bit unfair.
It’s clear you should not calculate VAT for every single country, only two options: 1) EU sale where you should pay and charge VAT; 2) non-EU export sale where you should not pay but should deduct VAT. All the famous EU music stores: Thomann and MusicStore do this. I think you have to do it as well.

Manuel

ginfonic That’s impossible to control/handle in Indiegogo, even less with all the VIP options. People would have gone for the cheapest option. The platform doesn’t offer any tool/control.

SLiC

Yes, I somehow doubt when the OXI is on sale in the shops in the UK that it will be 20%+ more expensive than in the EU shops….I dint think we should be penalised for supporting the Indigo campaign, ultimately it may have been cheaper for us to just wait and buy it in a shop if we end up paying double tax on the campaign ….

Manuel

SLiC Be sure future customers won’t enjoy a VIP discount. In any case, you can request a refund if you are not completely sure about your contribution. Shoot us an email in that case.

Same applies to anyone else.

But please, be aware with the increase in the price of components and raw materials of more than 40%, distribution margins etc., you won’t find the OXI One in retailing for much less than 700€.

davehouse

This bothered me from the start, too. I nearly didn’t back because the savings will be minimal once we’ve paid the UK VAT and fees. I understand Oxi are in a difficult position but it really sucks to pay extra when we’ve financially backed the project and helped make it a reality.

davehouse

And yeah, expect forum fuss on release (not from me but folk will be p*ssed, I guarantee it)

Manuel

davehouse I just checked you enjoyed a VIP discount. Be sure you won’t find this price in the future.

ginfonic

Manuel

Manuel Hi, Manuel. Yep maybe Indiegogo can’t accept it. But i’m not a backer. I just wanna to place a preorder here and now. And you not being indiegogo absolutely can do VAT deduction. You should not pay VAT to Spain tax service for my order shipped to Russia, so you should subtract VAT value from my price. It’s possible, the only point is in your intention.

davehouse

I definitely won’t be asking for a refund. I can’t wait to get mine 😁 It’s just a shame all the recent Brexit and Covid stuff has made it so hard for small businesses and consumers alike. As ever, thanks for being upfront about everything

SLiC

Maybe you can ship them as gifts/samples with the original 1E value! Otherwise the poor UK guys will have another 100E on top of the launch price?

Manuel

ginfonic hi, we cannot change the policy now. Otherwise previous backers would be left in a disadvantageous situation. Conditions are the same as during the campaign.
The only thing we can do for now is to deliver the best possible product and do it on time.

ginfonic

Manuel Disadvantageous situation? The previous EU backers paid €550, I will pay 550*1.2=660 paying VAT twice. Who of us will be in disadvantageous situation? I guess I will. But if you deduct VAT that I don’t have to pay I would be charged the same 550 as the other EU backers. At it will be honest.

inseptic

It sucks for sure, as the product is essentially ₂₀% more expensive for you, if you’re a business owner. I also paid the full price at Indiegogo even though I’m a VAT registered business in Germany. I guess Indiegogo is not really set up for b2b transactions. It’s more of a b2c situation. They don’t even send proper invoices. I only got a “contribution receipt” from Indiegogo per email. It’s completely useless for my taxes.

Manuel

inseptic we’ll send you a proper invoice before we start shipping!

SLiC

Yes, Indiegogo is a terrible platform for this type of thing (Kickstarter is a little bit better for financials but not much)

At least the price you paid is all you have to pay, we have to pay an extra about an extra 100 Euros on delivery in addition to what we have already paid….

Manuel

ginfonic Sorry for the late reply, I meant that other UK backers are in the same situation.
We cannot deduct now and issuing partial refunds is not feasible.