Vat on downloaded software from outside UK.

Tango1947

I downloaded some pc software from a USA website, and 20% vat was added to the price.

Is this correct, and does the vat automatically go to the UK government?

I'm not quibbling about paying it, I'm just curious to know how it works.

Caz3121

as you, the customer, is based in the UK the charging of VAT is correct. The US company will be required to submit VAT returns and pay the VAT to HMRC
article here that explains it - https://www.geraldedelman.com/insights/uk-vat-for-us-companies-all-your-questions-answered/