After checking with a UK based software reseller, they confirmed that they can sell licenses to Norway. Since Norway is not a member of EU, they will not charge the EU VAT rate.
After checking with the Customs Authorities in Norway, they confirmed that there is no Norwegian import tax on software.
If the software delivered on physical media,you have to pay 25% VAT to the Customs Authorities with the import declaration.
If the software is digitally delivered, the Customs Authorities don’t require you to pay them the 25% VAT, although if you are required to register the cost in your balance sheets, you will need to clarify with your accountant/auditor and/or the regional tax office on how it should be registered.
For a hobbyist, that means you effectively get the software at net cost from the reseller and at the same rate as the rest of the world.
Although this solves the problem with the inflated price of Delphi on the Nordic CodeGear web shop for the consumer – I can’t help but to ponder what kind of problem this pose for the local resellers. They would have to be able to offer some seriously good support to compensate for the inflated price they are required to charge.
I made a horrific mistake (worksheet formula cut and paste with wrong cell reference). The correct ratio is 31%, not 47%. Thanks to Bob Swart for pointing it out.
I should have taken a hint from my own comments in the first article… sheesh…
Still – fact is that the EUR price for Nordics still is 31% above the USD price. That is way out of wack.
You can see the calculation here.
The true cost difference for the Embarcadero webshop prices in Norwegian Kroner is shown in the rightmost blue columns.
More egg on my face at CodeGear forums: https://forums.codegear.com/thread.jspa?threadID=1589
— start edit —
I made a horrific mistake (worksheet formula cut and paste with wrong cell reference). The correct ratio is 31%, not 47%.
I should have taken a hit from my own comment on the 1.31 ratio… sheesh…
Obviously the 1 USD = 1 EURO assumption was completely false.
— end edit —
Embarcadero / Codegear are still treating 1 USD = 1 EURO. In Norway, the exchange rates give a markup ratio of 1.47 times. Personally, I think that is rather stiff. You can see the calculation here.
The middle example with the 1.31 ratio is due to Norwegian EUR/USD currency exchange margins (DnB NOR Bank). The true cost difference for the Embarcadero webshop prices in Norwegian Kroner is shown in the rightmost blue columns.
Tentative prices from one local reseller indicates a markup ratio of 1.33, comparing reseller out price to US webshop price. Why does this feel like being ripped off? When buying software online, I am used to getting the same price as the rest of the world.
Posted on CodeGear forums: https://forums.codegear.com/thread.jspa?threadID=1589