Skype: No VAT if You're Living Outside the European Union

When I opened my SkypeOut account back in Germany, Skype charged me 15% VAT on top of the money I wanted to put on my account.

It’s quite interesting that when I used my US billing address and my US credit card to refill my account with some Euros (yes, the account’s currency is not converted to USD), I’m not charged any VAT (see the Skype website for more information on their pricing). Woot. 15% discount 😉

The credit card transaction actually is performed in the United Kingdom, so my bank sent me an e-mail alert for “out-of-country usage of my credit card” a few minutes later. Wait–United Kingdom? Great Britain? One of the countries in the European Union that has not introduced the Euro a while ago? Strange…

Oh, and by the way: if you find some time, have a look at the Skype Brand Book. Great work.


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