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BM Cloud charges +20 % consumer VAT which you don't get back | Forum

Topic location: Forum home » Support » General Questions
John
John Apr 16 '24
Hi there,

Who else has this problem?
You cannot enter a VAT number when paying for the BMD Cloud. That's why you can't buy the service without VAT as usual.
The problem is that there is an EU OSS number from BMD on the invoice. If the VAT is shown at the same time, companies cannot deduct this VAT amount. But this is extremely important and is regulated by law through the reverse charge procedure.

For professional users this means: The BMD Cloud is approx. 20% more expensive!!! (depending on the VAT in your country).

With the small plan for €5 this may not matter, but it quickly increases to a higher amount with more storage.

I informed support via email. Their first answer said: Yes, you have to pay the VAT.
I then replied and pointed out that the law requires BMD to issue me a net invoice. I haven't received an answer since Monday.

Just to be clear: This VAT is paid by BMD to the respective country via a consumer EU regulation and you will never be able to get it back. But we are not consumers and I don't believe that the BMD Cloud is a consumer cloud.

Would be great to have a solution for this problem.

Thank you very much
Claudette Leanna
Claudette Leanna Apr 16 '24
Perhaps you could find and buy from a local authorized reseller (if they even offer the cloud service, that is).

Other than that, in my experience, support response times were usually up to a week, they'll probably get back to you once they find out the answer to your question.
Alex Marks
Alex Marks Apr 16 '24
It's definitely frustrating when you can't enter a VAT number and end up paying more than expected.
I came across some info about VAT in the UK, and it seems like Tom's Framework could be helpful for understanding your rights and options in this situation. You're right to expect a net invoice and to seek clarification from BMD on this matter.
It's important for companies to comply with the law regarding VAT, especially when it comes to professional users. Hopefully, BMD will address your concerns and provide a solution soon. Hang in there!
You can check out more about VAT and your rights at thevatconsultancy.com.