Skype is changing the way it charges VAT to EU customers

By Harish Jonnalagadda on 1 Jul 2014 07:52 am EDT

Skype has announced that it is changing the way it charges VAT to EU customers. Instead of charging VAT when customers add credit, Skype will add the relevant taxes when you actually use the service to make a call or buy a new subscription.

Until now, 15% VAT (8% for Swiss residents) was charged while purchasing credit, so if you were to buy €10 worth of credit, you would have been charged €11.5. Going forward, if you add €10 worth of credit, you will be charged €10.

When you make a Pay As You Go call or buy a new subscription, VAT will be charged for that transaction and deduced from your credit. For instance, if you want to buy a plan that costs €5/month, you'll be charged €5.75 (which includes VAT) during the time of purchase of the plan.

The VAT changes will begin rolling out starting July 28 2014. If you're interested in learning more, head on over to Skype's community page which details the changes.

How many of you use Skype regularly for calling? Do these changes make it easier for you to track how much VAT is being charged?

Topics: Skype Apps

Harish Jonnalagadda Harish Jonnalagadda "Newsroom Warrior for Mobile Nations" 49 (articles) 0 (forum posts)

Reader comments

Skype is changing the way it charges VAT to EU customers


Wait what is this Skype you speak of never used it and now I never will especially with bbm allowing me to make phone calls

Posted via CB10

BBM doesnt allow to make phone calls, it only allow to make voice calls to your bbm contacts. You cant ring up worldwide mobiles and land lines number.

I understand being a supportive fanboy but keeping comparing two different services is not very intelligent.

The opposite for me; I can't get a single Android/iCult friend or family user to install and use BBM. They're simply uninterested, since they have things that already work for them.

We use Skype, Ooma or our unlimited cellphone minutes.

Skype on BB10 is horrible.
Release BBM on WP to completely uninstall that android piece of junk completely

Sadly, I would've loved to have even this Skype experience on my PlayBook way back when.

Frosty white Q10/

I agree, It needed work and playbook could have benefited! Thankfully I had some playbook video contacts!

Posted via CB10

I don't use Skype only bbm video calling and the regular calling

Posted via CB10 on my awesome black Q10 or my white sexy Z10

My use of Skype (which is ok - but being a port- not as smooth an experience getting around the app as BBM or even CB10) and Google Talk (missing features) have gone down overall.

I was worried a while back when I started to realize that a decent app for these services wasn't coming any time soon and we'd had to just settle for the apps we have now.

Frosty white Q10/

Just realised....

This means that the Skype credit I have will have vat applied twice???
I won't use it up before July 28th - and if they start charging vat on calls then it becomes a rip off...

Posted via CB10

You can call phone numbers or send SMS with Skype too. For that you need credit. Skype is or used to be a very cheap way to call foreign numbers. Everything else is free, especially video calls and now video conference calls (which is really cool).

I thought Skype was free? Hell, my daughter uses it all the time and I don't pay for it. I better go check her computer just to make sure

Posted via CB10

They always charge VAT but before they were charging it on the whole credit you were buying now on a per use basis. It doesnt change much for end users. I guess is a bit more complicated to track if you have a VAT registration.

Guess it helps for those who don't use Skype calling a lot. You don't call, VAT is not charged, rather than paying VAT up front and not used up all the credit? Then again, if you're buying credits then you're using the service. Skype is trying to ensure that they're not over-charging VAT, which is a good thing.

Posted via CB10

They rather should change their junk app laying in BlackBerry World and show some respect for BlackBerry's move making BBM available for WP

Posted via CB10

To quote a good book.

"When I was a child, I spake as a child, I understood as a child, I thought as a child: but when I became a man, I put away childish things." like Skype. ;)

Posted via CB10 on my Q10

This is going to make it a nightmare for accounting. It's easier just to assess 15% on one lump sum then evaluate how many minutes you used. This is one less convenience in my opinion

Bbm'ers, call from your bbm to my laptop, plz?

Skype is only alternative to reach relatives abroad who do not have bbm

Posted via CB10 on glorious Z10 powered by

Most of my friends are now using bbm for voice calling some Skype but the quality is not there in Skype. Once I get a Skype user to try bbm they don't turn back......... when calling me that is. they still use it when calling family around the would that only use PC but they tell me they are very impressed with bbm and find it frustrating using Skype now. Bbm needs to go PC, xbox, wii, playstation , smart T.V. , infotainment units ect.....

Posted via CB10

I've to say bbm call and video quality is better

Family has android phones so they can only do audio calls, but it's much stellar and drops less often

Pity no video..

Smoked by my BBQ10

If you use Skype on a monthly package, get a friend outside VAT charging areas (eg Russia) to make the payment.

But realistically, use SIP protocol VOIP instead as it's better service, cheaper & less of a pull to the NSA.

5mm thicker & 3x battery life?

Sorry skype but you guys are joking..... but I got BBM voice and video at da same dam Time!!!! LMFAO......

Posted via CB10

Oh yeah did I say bbm voice calls are Free!!!!!!!!!!!! ? No well its free!!!!!!!! Why pay skype when bbm voice calls are free... Lol

Posted via CB10

Wake up,dude. BBM doesn't support calls on landlines, mobiles world wide and sending sms. This service is paid. Could you do that with BBM right now? No, you can't! ;-)

Posted via CB10