In January 2015 the European Union (EU) introduced legislation specifying that businesses supplying digital services to customers within the EU must charge VAT at the rate applicable in the country in which the service is ostensibly consumed. This also applies to businesses that themselves are based outside the EU.

Suppliers of digital services must be able to demonstrate that their customers are using the service within the country recorded in their records. They must provide two pieces of evidence to corroborate this location.

For TaxCalc users, this means:

• the account address that you registered with us
• the internet protocol (IP) address of your computer – which in most cases indicates its physical location.

Our system will validate and process a new order to be processed unhindered as long as:

• the account address has been updated to reflect any change of address from one country to another
• the computer used to make the purchase is in that country at the time of the transaction.

We've introduced measures to minimise any inconvenience to you, but there are a number of situations that can cause orders to be temporarily blocked.

While we regret any disruption and frustration this may cause, unfortunately we're bound by the legislation and must manually validate each transaction in these cases.

Reasons for a blocked order

1. Account address is out of date

Problem

You've moved out of the country in which you originally registered with us but you haven't updated your account. This applies even if you still own a home in your original country of registration.

Resolution

Log into your account on our website and select Edit my details. Update your address.

NOTE: Your debit/credit card address can be different to the one on your account and isn't validated as part of this process.

2. Buying the software while out of the country

Problem

You bought the software while you were temporarily out of the country in which you're registered with us. 

Resolution

If you're only briefly out of the country (maybe on holiday), then you have a number of options:

• Wait until you return and then complete your purchase.
• Change your account address to your current location and pay the VAT rate applicable there. Log into your account on our website and select Edit my details.
• Contact us to confirm that you intend to ostensibly use the software in your registered country. We can then manually confirm the applicable VAT rate and allow the transaction.

If you're out of the country for a longer period but not permanently (such as on a job secondment), then the local VAT rate will apply. Change your account address while you're away and change it back when you return home. Log into your account on our website and select Edit my details.

3. Using a corporate virtual private network (VPN)

Problem

You're accessing the internet via a connection managed by an employer which is routed through a corporate head office or IT centre that's located in a different country from your current location.

Resolution

Contact us to manually confirm the applicable VAT rate and allow the transaction.

4. Using anti-virus and firewall services

Problem

Your anti-virus or firewall service is intercepting malicious incoming connections by routing your internet access via its own server. This server is overseas and your computer appears to be located in that country.

Resolution

Contact us to manually confirm the applicable VAT rate and allow the transaction.

5. Being close to a national boundary

Problem

You're located very close to a national border and your internet connection appears to be in the neighbouring country.

Resolution

Contact us to manually confirm the applicable VAT rate and allow the transaction.

Data protection

You can find out more about the information we're obliged to capture in our privacy policy.