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ClickBank and VAT

Due to a European Community (EC) directive of July 2003 ClickBank Charges VAT on all purchases from customers in countries where VAT applies.  This causes confusion for both buyers and sellers, such as:

*  Sellers who are not themselves required to register for VAT, because they are below theappropriate threshold, for example, will find their prices being inflated by VAT.  But note that ClickBank, not product owners, take payment, so effectively it is not the product owner who charges VAT although that is often not realised by customers.  If your customers complain or suggest YOU are charging them VAT, not ClickBank,refer them to the following wording from ClickBank's site:

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Recommended Reading.  Avril Harper's

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'ClickBank purchases product from publishers at a wholesale price equal to 92.5% of retail, less a $1 stocking fee. ClickBank also collects and remits EU VAT taxes as required.  If an affiliate generated the sale, the wholesale price is automatically split between the publisher and affiliate according to the commission percentage set by the publisher. Amounts are credited to the publisher and affiliate at the moment of sale.'

*  The amount varies by country and will show before you approve the transaction.

*  Sellers using Clickbank can include a short mention at their site to indicate EC buyers may be charged VAT.  This can often be self-defeating, however, especially viewed by non-EC buyers who may subsequently consider the product is aimed at European readers and may be unsuitable for countries outside the EU.  For example, I use ClickBank for most of my online eBook sales, mainly because I like and trust ClickBank, also because I create products of international appeal.  My main reason for choosing ClickBank, however, is because the EC is just a tiny proportion of my target market and the Dollar is the currency most of my customers use in the course of everyday life.  My marketing is overwhelmingly US based, targeting mainly American readers, so any mention of VAT is entirely superfluous in most cases.  If, however, a British or European potential purchaser chances upon my site and chooses to buy my product, he or she is made fully aware that additional taxes are added to the price by ClickBank.  So potential buyers have ample opportunity to choose to pay VAT or to cancel their order.