Why is Dropbox charging Irish VAT to UK customers?

[Richard T.21]

The UK left the EU to all intents and purposes on 1 January 2021.

Businesses providing digital services to Britain from outside Britain are obliged to register for British VAT from that date and their invoices should show a British VAT number: "If you’re selling digital services from the EU to the UK you will need to register and account for VAT." from paragraph 2.5 on https://www.gov.uk/government/publications/accounting-for-vat-on-goods-moving-between-great-britain-...

A search shows that Irish VAT is not applicable to supplies such as these outside the EU, because the place of supply is considered to be where the service is used (not supplied).  British VAT is probably applicable, in which cases a British VAT number should be quoted on Dropbox invoices.

Dropbox should supply a VAT invoice with a British VAT number on it. The Irish VAT invoice is incorrect. This would mean that the VAT is payable to the British government (and reclaimable if the customer is VAT registered in Britain).

Please can anyone explain why Dropbox invoices charge Irish VAT?

Many thanks.

[Richard T.21]

I regret that you are incorrect.  The VAT you are being charged by other companies is British VAT as that complies with UK laws on this. It is not VAT charged for the country of supply, but where it is supplied.  These companies are supposed to account for VAT to the British authorities.

Dropbox is the same.  They should not be charging Irish VAT to customers outside the EU, as it is considered an export from the EU country's perspective, and they should (subject to thresholds and correct VAT registration) be charging UK VAT and including a UK VAT number on their invoices.

[Richard T.21]

What a master lesson in obfuscation and avoidance their response is!

[Richard T.21]

I think the matter shoulkd be taken up with HMRC in the UK.  Dropbox appear not to be properly accounting for VAT on their services provided in the UK (unless, their sales turnover falls short of the VAT threshold). The Irish authorities probably couldn't give two hoots as, presuming Dropbox account to them for the VAT they have collected, they are making money when the nature of the export says they shouldn't be.