Online digital purchase? Check the tax rate

Posted 1st Mar 2022
When buying a digital subscription, let's say a VPN, from the US, use the state of Colorado as your location. They have a 0% rate, whereas the likes of Texas has an 8% charge, although both are better than the ridiculous charge of 20% for VAT that we lucky Brits are stupid enough to pay.
For example, the UK purchase of Surfshark (before TCB & others) would be £53.50, whereas I just paid £44.94
Picking a different country can also help, with Turkey being the current favourite for Youtube, with Turkey and Hungary being good for games.
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  1. powerbrick's avatar
    Oh yeah let's all avoid paying VAT what a great idea that would be the government wouldn't crack down or just increase tax elsewhere
  2. bozo007's avatar
    It is not just state dependent but also county and city dependent. There are over 11k local tax jurisdictions in the US which is why there is no all inclusive price on the tag. Los Angeles has over 10% whereas Oregon and Alaska have no sales tax. (edited)
  3. TristanDeCoonha's avatar
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    bozo00701/03/2022 17:29

    It is not just state dependent but also county and city dependent. There …It is not just state dependent but also county and city dependent. There are over 11k local tax jurisdictions in the US which is why there is no all inclusive price on the tag. Los Angeles has over 10% whereas Oregon and Alaska have no sales tax.


    Unfortunately most websites will not allow you to break the county down to local zones, and so you are stuck with the overall rate for that county, or country. But certainly if a site was detailed enough for me to be able to abuse that privilege, then I would certainly do so.
  4. TristanDeCoonha's avatar
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    deleted46841701/03/2022 17:39

    Oh yeah let's all avoid paying VAT what a great idea that would be the …Oh yeah let's all avoid paying VAT what a great idea that would be the government wouldn't crack down or just increase tax elsewhere


    Perhaps, for the sake of the financial income of the country, you would be better remonstrating to those who actively avoid tax to the tune of millions per year, than the small man who avoids £8 in VAT.
    Without trying to think of the figures, I would consider it feasible that if every individual below the income bracket of £40,000 per year stopped paying tax in any form, it would still come nowhere near the figures owed by the financially and legally astute that actively remove money from the UK taxation system.
  5. powerbrick's avatar
    TristanDeCoonha01/03/2022 17:49

    Perhaps, for the sake of the financial income of the country, you would be …Perhaps, for the sake of the financial income of the country, you would be better remonstrating to those who actively avoid tax to the tune of millions per year, than the small man who avoids £8 in VAT. Without trying to think of the figures, I would consider it feasible that if every individual below the income bracket of £40,000 per year stopped paying tax in any form, it would still come nowhere near the figures owed by the financially and legally astute that actively remove money from the UK taxation system.


    Sorry I should say evade tax which is what you are proposing, large corps avoid tax which is perfectly legal
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