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Question

I am VAT registered. Why do I have to pay tax?

Answer

Please note that if you have a correct registered VAT ID, you can add VAT ID on Billing Address and your tax will be waived.

Since January 2019, CLO Virtual Fashion LLC (CLO US office) has officially been registering VAT MOSS (Sales Tax) in Ireland (EU).

Since our online license sales are handled by our US office, all of our Individual license pricing will be in effect according to the regulation below.

From January 2015, new legislation came into force that affects the sale of digital services to customers in other EU countries.

Digital services include broadcasting, telecommunications, and electronic services (which includes software products). 

The VAT rate that is calculated for this type of transaction is based on the place supplying the service.

The legislation that is regulating MOSS rules is:

• Council Directive (EU) 2017/2455 - Supplies of services and distance sales of goods (VAT e-commerce package).

• Council Directive 2008/8/EC - Place of supply of services.

• Council Implementing Regulation (EU) No 1042/2013 - Place of supply of services.

This means if your billing address is under the EU region, VAT rates for each country will be added to your purchase.

If you would like to discover more regarding VAT MOSS, please review the file attached.