A $23 item should not have $5 as VAT for france but $4.6, I know it’s sounds silly for just $0.4 but thinking of thousands of dollars transactions… doesn’t sounds legit to me
It may be a rounding of the amount ?! For a pleasant appearance.
However VAT does not pay by you of your money, it is paid by the client.
I’m guessing they’re registered for VAT in one European country, and they’re paying VAT in that country at their specific rate. Would get pretty complicated if they had to pay different rates in different countries depending on the location of the buyer.
After checking, @SpaceStockFootage is right. Also it does not affect anything, because it works “double taxation” within the EU. The only people affected are customers in EU. Because they can pay more or less for the same product.
“Double taxation is the levying of tax by two or more jurisdictions on the same declared income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes). This double liability is often mitigated by tax treaties between countries.”
A company can register in an EU country for (VAT)MOSS, but must charge the VAT based on the rate of the EU country in which the consumer lives. In case of Envato, they are rounding all up the amount (>= 0.5). Some EU countries allowed rounding down for its own benefit, some not.
So they should be charging between 17% and 25% depending on where the person lives? Does seem to be right for me, just adding something to my basket and it added 21%, which is the right rate for Spain. Hadn’t bothered clocking the rate before, just saw there was tax added, grumbled a bit, and then carried on!