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Changes to VAT and old subscriptions

PostPosted: Wed Jan 20, 2021 5:19 pm
by DPSoftware
Updated 26 January.

DP Software is no longer registered for VAT and the following changes are made as a result:

1) Physical software sales in the DP Software online shop will no longer have VAT added but prices have increased so that the total cost of each package is the same. This means prices will not change for the majority of customers in the UK. We are no longer shipping physical products overseas except to our official distributors in Germany, Denmark and USA. Please purchase locally or in the download shop.

2) DP Software currently sells all download versions and subscriptions through MyCommerce in the USA which is not affected. Tax will continue to be collected by MyCommerce and sent to the tax authorities in your country. A small number of users still have an old PayPal subscription that pays DP Software directly. In cases where tax is payable on this, the subscription will be cancelled and affected customers will be emailed a link to enable them to re-subscribe at the same total cost per year. Where your country does not demand tax from overseas digital sellers without a presence in your country, the original subscription will remain (for example USA)

3) sales fulfilled by DP Software are only available for delivery in the UK due to Amazons rules that merchants have to pay all taxes in advance. It is just too time consuming to do this.

Note that if you are a VAT registered business then you will not be able to reclaim any VAT or use your VAT number to reduce the price. If you want to reclaim VAT then you will need to purchase from a reseller.

All our resellers in the EU can purchase at the previously agreed VAT exclusive prices but will need to pay tax on entry to their country and claim this back as input tax on your quarterly VAT return unless you have arrangements for deferment. If sales exceed Euro 10,000 per year in any country then this will change and resellers will be notified individually.

Resellers wanting downloads must purchase through MyCommerce as DP Software cannot directly sell for download.