Indicate the wrong country for VAT?

Hello friends,

I'm thinking of buying a rather expensive course online, which would cost around €300. However, you can specify any country you're buying from. The thing is, if I specify the USA instead of Germany, I'd save myself the 19% VAT. That would bring the whole thing down to around €245.

My question: Is this legal, illegal or a gray area?

Greetings 🙂

(2 votes)
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Montiplex
2 years ago

What is illegal about it? The question of the country of performance has only civil legal consequences, because the course provider determines its gross price according to this indication. That’s why it’s absolutely irrelevant to tax law, what you say to a country.

Example:

  • Price for German customers: €1,190 (incl. 19 % VAT)
  • Price for Country X: €1,100 (incl. 10 % VAT)

So if you would now state land X instead of Germany, you would only have to pay €1,100, so you save €90. However, since the German tax rate does not change the price you have to pay in the end, the tax is no longer calculated from 1.190 €/1,19*0,19 (i.e. 190 € USt), but from the other base, namely the 1,100 €/1,19*0,19 (i.e. 175,63 € USt). The tax rate remains at 19%, only the basis of assessment is changed.

The tax office basically doesn’t care what price is paid now, but most likely the price provider doesn’t find that great. However, this is a purely civil matter and not a tax law.

Montiplex
2 years ago
Reply to  Maurizio04

No problem:-)

miiiaaaaaaaa
2 years ago

Where would you order? If you add another country, you would normally be able to enter only one address in the country in question? If there is an address, there is a risk of customs, that could be problems due to fraud.

Othetaler
2 years ago

Of course it’s illegal. Of course I can’t say how high the danger is to fly. But a serious company should check this.

HugoHustensaft
2 years ago

But you run the risk that the provider works with a geoblocker, i.e. the course can only be seen from the given country – would then be a classic shot in the knee.

A tax penalty procedure could also speed you up.

HugoHustensaft
2 years ago
Reply to  Maurizio04

First of all, if the geoblockers are using, you will notice and the money is sunk.

In the financial flows, I would not rely on how to balance them at the end – and usually there are rather stupid coincidences such as plausibility that you do not notice, for example check out in the Paypal, from which country you charge the payment.

Knoerf
2 years ago

As long as you don’t have to enter your real data and the payment method is anonymous, such as Paysafecard, then it goes. Your IP alone is not enough to prove it. ;

Knoerf
2 years ago
Reply to  Maurizio04

At Paypal they have your data except you know someone from the USA.

Knoerf
2 years ago

Once you have 250 euros, you will have 300 euros. ;

Knoerf
2 years ago

I’m probably saying that all the rich and elites are behind billions of taxes and that’s completely legal. Why shouldn’t the “small man” also benefit from slip holes?

If you’re going to be safe, you’re gonna give your real place of residence. I mean, 50 euros more are not the world now. You have 50 euros quickly.