Where the funds collected as "VAT" goes???

I would like to know WHO IS RECIEVING THE FUNDS COLLECTED AS "VAT".

I am running some businesses in EU. If i have to collect VAT i am taking this ones like FOREGIN MONEY, money owed by goverment. Each month my accounting staff substracts the VAT paid by my company to the others and the rest sends to tax office.

Now i am surprised, because a US company never charged us for VAT. Does Lndenlab has european branch , which i charging us for the VAT and pays the VAT to any european GOVERMENT?

Thank you for answers

LL has opened an office in the UK.

This explains it. I can quite pay it then...

And the VAT collected from residents of mainland Europe?

LL is acting as a tax collector for the various EU countries. The money collected will be passed to the excise offices of those countries. The European parliament has been pushing American companies to do this on transactions made with EU residents. Nothing to be done about it. Sad but true.

Yes, LL will be submitting the net VAT (ie, VAT collections net of VAT paid) to the UK, and the UK will distribute it to the various EU member states.

Exactly. I just wanted to know if the money will finish in the EU system...

And if I recall correctly, the ostensible reason was to more effectively serve their growing European (and British) customer base.

Ouch! I sprained a muscle trying to deadpan that.

I wonder if it's worth drawing attention to the injustice of this policy by petitioning the Prime Minister?

http://petitions.pm.gov.uk/

Far from levelling the playing field for online European businesses, this policy is actually punishing Europeans using innovative products that have little to no competition.

The petition idea might sound gimmicky, but provided at least 200 people sign, a respond from the government will be forthcoming. In past cases where thousands of people have signed, the Prime Minister has personally responded. (I've received emails from Tony Blair and Gordon Brown after signing petitions in the past.)

Just an idea .. that might actually be beneficial to Linden Lab from a publicity POV, and encourage debate in the wider community with regards this EU policy.

While we at the questions, can anone explain why even if they have an office in the UK I am still being billed in USD and at the mercy (or otherwise) of exchange rates ?

Shouldn't be hard to get 200 UK residents who aren't happy with the decision to sign that.

7% of the playerbase are from the UK, so that should be... what, 3000+ people we can get involved?

Broccoli

Couple of questions from a parochial git;

Are there no indirect taxes levied on services in the US?

If there are, am I paying them when I buy from a US supplier?

If I am, does this not mean that I'm now paying such taxes twice?

No. There is no national sales tax or other VAT equivalent in the US. It's a matter of state law, and the way that it usually works is that you pay sales tax in your state of residence (ie, the buyer's state of residence), if it charges sales tax related to the transaction (not all of them do). But if you live outside the US, you aren't being charged any US state sales tax, generally.

Thanks for that