Skype uncontactable-VAT fraud!

Chris9674

Hi,
Sorry for the seeming contentious title, hope I haven't offended anyone who happens to be reading this who works for Skype, also sorry I am a newbie and can't find a more appropriate place to position this topic post, sorry!
Anyway it seems Skype think they can get away with charging 15% VAT on all their orders for top-up credit, this is surely a scam, don't know how they can get away with this and can't believe I am the first person to notice!
It says in the blurb, and I admit I haven't read it all (there a reams of it) that unless you are registered for European tax exemption you have to pay the 15% tax on all you top-ups. I assume this must be paid to the Belgian (Skype is based in Luxembourg) exchequer, unlesss you are a business which, again I assume, may be "tax-neutral" (as registered businesses tend to be in the UK, ie.
they collect tax on sales from their customers and pay tax on their purchases and subtract one from the other).
Since I do not live in the UK I do not know what the situation is there on paying a tax to a European government on purchases made in the UK, however I would surmise that it would be the same as for the Channel Islands where I live- you don't pay taxes on products manufactured abroad but ordered from this country? Correct me if I'm wrong. Since with Skype you are in effect purchasing time with a data stream through Skype's servers (ie. internet telephony or Voice Over Internet Protocol (VoIP)) is this not similar to e.g. purchasing software ie.. downloads or music over the internet?
Just wondering if anyone can enlighten me- probably should be on www. Legal Beagles or something...?!
Oh yeah and my main gripe is you can't contact Skype, they just ignore my emails.

Fruit_and_Nut_Case

Skype wrote:

“Thank you for contacting Skype Support.We understand your concern regarding VAT. Currently Skype does not differentiate between payments received from various low tax regimes within the EU, and will charge 15% VAT for these transactions. Our current arrangements allow us to charge the Luxembourg rate (15%) for all transactions from within the EU. We are aware that the VAT rate is lower in certain areas (Canary Islands, Madeira, UK Channel Islands & Isle of Man). We have requested clarification from Luxembourg authorities, where we are based, as to how to treat low tax locations within the EU. Until we receive this clarification, we must charge you 15% VAT. You are able to request a VAT receipt from us, and may be able to recover the VAT. We understand that this situation influences the rates for your calls but we hope that our rates are still competitive. Should you need more assistance, feel free to contact us again; we will be glad to help.”

http://www.brighton-accountants.com/blog/vat-jersey/

HTH

Buzby

You don't say where you ae located - but it clearly isn't any scam, the tax is paid to the appropriate authorities. I buy software from the USA, yet firms want to charge me VAT at 20% because the EU tells them they must.

My scepticism is that I'm charged it, but I doubt whether it actually is paid over. Skype will. Alternatively, register with another supplier who doesn't charge tax to non residents.