Why am I being charged VAT?

When paying for Casedo you are automatically charged VAT on the subscription price. Casedo uses US-based payments platform Gumroad to process payments. Some users have questioned why VAT is levied if the transaction is with a US-based business. Because Casedo uses external non-UK based services, Casedo must comply with the law regarding non-UK suppliers of digital services.

The law states that if the digital services are supplied to a consumer, the supplier must charge (and register for and account for etc.) UK VAT.

If they are not supplied to a consumer the supplier should treat them as a consumer unless they are either (i) provided with a VAT number or (ii) choose to accept other evidence.

Click HERE to find out more.

If the customer is treated a business, no VAT should be charged and the business must account for VAT under the reverse charge scheme.

N.B. if you are happy to pay (and reclaim) VAT then there is nothing to be done. However, if you would prefer to pay exVAT and account for the VAT differently, then you can let Gumroad know your VAT number and they will refund you the VAT and issue an exVAT invoice. Click HERE for more information.

N.B. the above is true for UK-based businesses, for businesses based outside the UK other rules may apply.

If you need further help with this, don’t hesitate to email us at [email protected] or call us on +44 203 637 9270

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