Thank you for the answers! I consulted with my accountant as well, and she said that it shouldn't be a problem. And to be extra sure, I should state the tax information somewhere (for example in FAQs or something). Then it shouldn't be a surprise to any customer who later thinks that he/she has the "right" to get tax deducted (from 0% VAT invoice).
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I'm EU based company and sell products worldwide. All our product prices shown are final and include tax (VAT).
So for example, if the product price is 20€, then a customer from Germany pays €16.67 for the product plus €3.33 tax (20%), whereas the customer from the US pays €20 for the product and 0% tax. The advantage of having taxes included in the price is that all customers see the final price.
This kind of practice is quite common among web shops (at least EU based), and even some articles explain the same way (for example Sufio.com articles)
But I can't find an answer, is it legal from our side? Or is it against the law? Or is it in between, a grey area?
I recently had a situation where a customer outside EU demanded that he has the right to get the VAT back. That would have been right if we would have charged the tax. Although our invoice indicates that the tax was 0%, then he said that it is his right and it's against the law (to treat him differently?). So he believes that he should be treated like anyone else, and pay the same amount as EU based customer minus taxes. That got me confused and to prevent such possibilities in the future, I would like to know if this is legal from our side, to have the same final price to every customer (regardless if we pay the tax or not from that specific order).
Maybe someone has already searched/asked and got some answers if this kind of practice is legal at all?
Thank you all!
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