That isn’t an explnation. Why do they not have to pay tax where they are registered?
Yeah, that’s not how tax works anymore. There’s been a huge push to what is called ‘market based sourcing’ which means you pay tax where your customers are, regardless of whether you are there or not.
Sorry, I should have clarified further and @ACree did (thanks).
Ok, say in you’re in the US and you’re headquartered in Delaware and are a Delaware corp. But you provide services to CA residents. CA will want your sales sourced to CA and a portion of your corporate income allocated and taxed there, and will want you to collect CA sales tax from those residents you sell to. They typically want that sales tax by the rate applicable at each zip code. That is a huge simplification of course, because state taxes are complicated. International tax is even more complicated.
But does it matter where their customers actually are, or just where they were paying for something? Eg, if the customer pays in the UK, they pay tax in the UK, even if the customer actually lives in France.
(Maybe thats a question for strava’s tax people)
That is the issue. Again simplifying. If the customer is in France, the sale should be recorded as occuring in France. If the account was originally set up in the UK and can’t be changed, Strava would be overpaying in one country and underpaying in another. In the US, our sales tax is in addition to the price, so the customer could be wrongly paying more or less too, and the tax that should be going to their actual locality is going to a different one.
Taxes are complicated, and they get really ugly when companies don’t build systems that allow the needed data to be captured.
To add on to what @ACree said it’s referred to as place of supply if you want to go down that rabbit hole further.
Every country has their own rules. Canada requires tax on residents based on location. They don’t tax sales in other jurisdictions.
Rules keep expanding so rules that require those providing services to residents can become taxable. TrainerRoad is now collecting tax on Canadian residents even though they are not in Canada.
Expand the countries and different rules and it becomes very complicated.
Thanks to @dcrainmaker for taking the time to obtain Strava pricing from 75 countries.
Is it possible to cancel your annual subscription renewal, and then resubscribe as a user in Brazil (who will be paying the equivalent of US$30 for an annual subscription)? Or will subscription pricing always be based on the country you signed up from?
I canceled my annual subscription when @dcrainmaker story first came out as I didnt want to to auto renew. I just went to look at my subscription options and it only gives me the option of a annual subscription at 79.99. I really only was a subscriber to create routes for a few months so I would have considered doing the monthly subscription for 3 or 4 months but as that is not a option i may just do the Ride With GPs monthly
If it can be done, it would be done by using a VPN.
I don’t get why they just don’t have ads like every other social media site. If you want to get rid of the ads then pay for it. Otherwise everyone has access to the same features.
Well as shady and stupid as they have handled this whole mess, my sub is due in Sept and it s @79.00. Thats one coffee a month. My lunch is 25.00 now a days. Its all relative. I am good with the $1.60 a month increase
Your lunch is $25? 
@dcrainmaker’s second video is even funnier than the first. The Fight Club references are gold. As was the grammatically weird sub clause denying “others” the “right” to communicate price changes. 
And the seamless integration with the sponsor read … while uncovering a clear violation of EU laws 
I consider clubs and challenges ads
I’m sure it’s been said 50 times in here already but for many people it’s not about the money, it’s about how deceptively they handled this.
I’ve been a strava subscriber for years and would have been fine to continue to support them had they approached this by expressing any form of gratitude for long time supporters and explained their rationale.
The contrast to how TR handled their legacy pricing is stark to say the least.
That would be the case for me.
Ignoring their poor customer service for the moment, if someone uses all or most of the features on Strava then I can understand someone paying for the service. That it is a significantly different cost to use those features depending on where you signed up for the service is a different can of worms.
But I don’t, and won’t use all of the features that a subscription provides. The price keeps going up but the features that I use really haven’t changed in a long time. And I think that is a problem for Strava overall, the use case varies on an individual basis but I suspect most of their paying customer base does not regularly use most of the features on Strava, nor will they in the future.
They tried going to a tiered or somewhat a la carte billing scheme once before and also bungled that greatly, imho.
If they were to offer a true a la carte method of selecting what we want out of their platform and thus only paying for what we want and use I think they’d be better off than where they’re at currently which is kind of all or nothing, free or whatever the thing cost where you signed up.
When new features are added they could let subscribers and free users trial the addition, and trial the other components of the service to see if they have added value. Some things might only have value once in awhile as well and we wouldn’t want them permanently.
Relive was an example of something that I liked but only had value to me once in awhile when I did something that I thought would look neat on there. I definitely couldn’t use it on even a monthly basis. I think a lot of what Strava offers is also like this, it’d be nice to access sometimes but I don’t need it day to day or even week to week.
You nailed it. I’d gladly pay $20 a year for leaderboards and nothing else. I wonder if they’d get more revenue in total with more members paying less instead of fewer paying more as the current strategy seems to be heading.
Generally no. There is a transition point but too low doesn’t get enough