Re:AWS just changed my default currency?
by sudhirj on Thursday March 03, 2022 @10:20AM
(#30542140)
If you have a billing address in country X and country X mandates that all invoices paid by customers in country X must have certain taxes applied and remitted, AWS will set up a subsidiary in that country, bill in the locally currency, and remit taxes.
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Can’t really be any other way, country X will usually stipulate that all taxes be remitted in the local currency. So they’ll have to be calculated in that currency, therefore invoices in that currency.
Re:AWS just changed my default currency?
by quesomaster9000 on Thursday March 03, 2022 @02:41PM
(#30545715)
> So they’ll have to be calculated in that currency
Yes.
> therefore invoices in that currency.
No, the value of the foreign currency in the local currency at the tax date of the invoice is used to calculate the applicable local taxes. It's 100% A-OK for a Canadian company to invoice its Canadian customers in USD (or EUR) and pay taxes in CAD using GAAP rules for currency valuation (e.g. using the daily published interbank rates).
Many accounting or billing packages just do it the simple & dumb way though, so you end up with situations like the OP's.
Re:AWS just changed my default currency?
by brody_hamer on Thursday March 03, 2022 @11:03AM
(#30542716)
That's interesting.. Because DigitalOcean also has a Canadian subsidiary, collects HST (sales tax) and charges me in USD.
And an FAQ provided by AWS indicates:
> Invoices will be issued in CAD or USD based on the customer’s preference.