Just noticed this when I logged in. Only really an issue for the EU folks.
Linode will soon be collecting and remitting value added tax (VAT). In general, this applies only to customers within the European Union (EU) who have not provided us their VAT registration number.
@Amitz said:
I still wonder why some US providers take EU VAT off me and some don't. Ramnode take my 19%, SpeedyKVM do not. Strange and completely stupid system.
Technically any US provider selling services to you should charge VAT at your countries rate and remit that to them via MOSS, not really enforceable though (at the minute) so I am surprised if any non-EU provider would do it. Probably why SpeedyKVM do not, plus they offer no services from within the EU.
For Ramnode they do offer services from within the EU, that is probably why they will charge it.
@Amitz said:
I still wonder why some US providers take EU VAT off me and some don't. Ramnode take my 19%, SpeedyKVM do not. Strange and completely stupid system.
Technically any US provider selling services to you should charge VAT at your countries rate and remit that to them via MOSS, not really enforceable though (at the minute) so I am surprised if any non-EU provider would do it. Probably why SpeedyKVM do not, plus they offer no services from within the EU.
For Ramnode they do offer services from within the EU, that is probably why they will charge it.
In the other side, EU companies cant bill VAT for anyone in the US. Something isnt right there. US cant bill VAT to EU unless they have an EU division/subsidary.
Ramnode offerinf services within the EU doesnt allow them to charge VAT for EU customers. Same applies here. They need to be incorporated in the EU.
voluntarily register for VAT in the UK under the special scheme for digital businesses and then register for VAT MOSS - your UK sales will not be liable, unless they’re above the UK VAT registration thresholds
register for VAT in the member states where you have non-business customers
Businesses outside the EU (for example, the USA) that supply digital services to consumers in one or more EU member state are also affected by the changes. They’ll either have to register for VAT MOSS in a member state, or register in each member state where they have non-business customers.
voluntarily register for VAT in the UK under the special scheme for digital businesses and then register for VAT MOSS - your UK sales will not be liable, unless they’re above the UK VAT registration thresholds
register for VAT in the member states where you have non-business customers
Businesses outside the EU (for example, the USA) that supply digital services to consumers in one or more EU member state are also affected by the changes. They’ll either have to register for VAT MOSS in a member state, or register in each member state where they have non-business customers.
It's basically the same for the "Use" tax in the US, only in reverse. You're technically still supposed to charge it and pass it on, but most states just don't care unless you're huge.. and then the monoliths like Amazon automagically get you for each state since they're registered there (and have deals where they don't have to pay sales tax, so they can outright pocket it).
To be honest I think it's the right thing in some ways, I mean a business registered in the UK and providing services from say Telehouse needs to pay VAT, subject to thresholds, yet a company in the USA could put servers in the same location and not have to worry about VAT and therefore provide an unfair price advantage.
But equally, it should, of course, work the other way.
MikePT said: I do not think you are getting it right...
Do explain.
Already have. And from what I know, MOSS isnt applied in most companies. E.g. Even EU companies. We charge VAT, B2B or B2C in Portugal. But we do not charge VAT for FR, they do VAT reversal. E.g, we do not pay VAT for Clouvider invoices. Its vat reversal.
MikePT said: We charge VAT, B2B or B2C in Portugal. But we do not charge VAT for FR, they do VAT reversal. E.g, we do not pay VAT for Clouvider invoices. Its vat reversal.
Yes, in your own country you charge and are charged VAT. For other countries within EU and a VAT registered business you do not charge, nor are charged VAT. You still charge B2C no matter where are they (except countries outside the VAT system).
For portuguese company VAT registered to charge me as a romanian customer is correct as long as I am not purchasing through my VAT registered company, in which case is not. If my company is not VAT registered, they have to charge still. For an US company to charge me VAT as an individual is also the right thing to do as long as they send the money to Romania through MOSS. If an US company or individual buys from Prometeus, we do not charge them VAT (although, probably, we should be charging their local sales tax and send it to their state's treasury, but this is not operational yet).
MikePT said: We charge VAT, B2B or B2C in Portugal. But we do not charge VAT for FR, they do VAT reversal. E.g, we do not pay VAT for Clouvider invoices. Its vat reversal.
Yes, in your own country you charge and are charged VAT. For other countries within EU and a VAT registered business you do not charge, nor are charged VAT. You still charge B2C no matter where are they (except countries outside the VAT system).
For portuguese company VAT registered to charge me as a romanian customer is correct as long as I am not purchasing through my VAT registered company, in which case is not. If my company is not VAT registered, they have to charge still. For an US company to charge me VAT as an individual is also the right thing to do as long as they send the money to Romania through MOSS. If an US company or individual buys from Prometeus, we do not charge them VAT (although, probably, we should be charging their local sales tax and send it to their state's treasury, but this is not operational yet).
That is correct, yes. Although MOSS is too recent for now. Most companies do not apply it. We pay VAT to our government instead when we buy from US. VAT reversal thing.
voluntarily register for VAT in the UK under the special scheme for digital businesses and then register for VAT MOSS - your UK sales will not be liable, unless they’re above the UK VAT registration thresholds
register for VAT in the member states where you have non-business customers
Businesses outside the EU (for example, the USA) that supply digital services to consumers in one or more EU member state are also affected by the changes. They’ll either have to register for VAT MOSS in a member state, or register in each member state where they have non-business customers.
and so on...
I do not think you are getting it right...
yes he is totally right. The things he has written are from the official MOSS regulations. ask your accountant...
He also was about stating that non-eu businesses can easily register with moss, without the need for being incorporated in the EU but to be able to handle the the B2C VAT.
you always need to differentiate between B2B and B2C, as @Lee's quote clearly states VAT is all about non-business customers.
We pay VAT to our government instead when we buy from US. VAT reversal thing.
Because you are a business and can provide a
valid VAT id - look at the mail from linode, they won't charge VAT either... but for B2C they have too and same goes for you. if you deal with a french B2C you shoud charge him french vat and declare through MOSS (as long as it's about the services falling under those regulations ofc)
Comments
Good. Finally, took them long enough.
I dumped linode when they shoved me out of xen cause they would no longer have it on their servers.
Its been a better place without you.
Bad.
Hey, I'd rather have Linode only apply it to EU rather than the usual EU companies charging me VAT and refusing to remove it
Well, for those paying 5 dollars a month, it's just one extra dollar or abouts. No need to panic.
I still wonder why some US providers take EU VAT off me and some don't. Ramnode take my 19%, SpeedyKVM do not. Strange and completely stupid system.
Technically any US provider selling services to you should charge VAT at your countries rate and remit that to them via MOSS, not really enforceable though (at the minute) so I am surprised if any non-EU provider would do it. Probably why SpeedyKVM do not, plus they offer no services from within the EU.
For Ramnode they do offer services from within the EU, that is probably why they will charge it.
In the other side, EU companies cant bill VAT for anyone in the US. Something isnt right there. US cant bill VAT to EU unless they have an EU division/subsidary.
Ramnode offerinf services within the EU doesnt allow them to charge VAT for EU customers. Same applies here. They need to be incorporated in the EU.
They don't need to be incorporated, just register for MOSS.
Any documents stating that? No portuguese company can bill US buyers. Same applies to US > EU per our rules...
Well for the UK, summary:
If you’re not VAT registered in the UK
You’ll need to do one of the following:
voluntarily register for VAT in the UK under the special scheme for digital businesses and then register for VAT MOSS - your UK sales will not be liable, unless they’re above the UK VAT registration thresholds
register for VAT in the member states where you have non-business customers
Businesses outside the EU (for example, the USA) that supply digital services to consumers in one or more EU member state are also affected by the changes. They’ll either have to register for VAT MOSS in a member state, or register in each member state where they have non-business customers.
and so on...
Sucks.
I do not think you are getting it right...
It's basically the same for the "Use" tax in the US, only in reverse. You're technically still supposed to charge it and pass it on, but most states just don't care unless you're huge.. and then the monoliths like Amazon automagically get you for each state since they're registered there (and have deals where they don't have to pay sales tax, so they can outright pocket it).
To be honest I think it's the right thing in some ways, I mean a business registered in the UK and providing services from say Telehouse needs to pay VAT, subject to thresholds, yet a company in the USA could put servers in the same location and not have to worry about VAT and therefore provide an unfair price advantage.
But equally, it should, of course, work the other way.
Do explain.
Who still uses Linode? The feature set is a few years behind now.
Already have. And from what I know, MOSS isnt applied in most companies. E.g. Even EU companies. We charge VAT, B2B or B2C in Portugal. But we do not charge VAT for FR, they do VAT reversal. E.g, we do not pay VAT for Clouvider invoices. Its vat reversal.
As long as you're happy with what you do that's all that matters.
Yes, in your own country you charge and are charged VAT. For other countries within EU and a VAT registered business you do not charge, nor are charged VAT. You still charge B2C no matter where are they (except countries outside the VAT system).
For portuguese company VAT registered to charge me as a romanian customer is correct as long as I am not purchasing through my VAT registered company, in which case is not. If my company is not VAT registered, they have to charge still. For an US company to charge me VAT as an individual is also the right thing to do as long as they send the money to Romania through MOSS. If an US company or individual buys from Prometeus, we do not charge them VAT (although, probably, we should be charging their local sales tax and send it to their state's treasury, but this is not operational yet).
Living in the U.K. Is bad enough and then you have VAT
That is correct, yes. Although MOSS is too recent for now. Most companies do not apply it. We pay VAT to our government instead when we buy from US. VAT reversal thing.
And now with Brexit I don't know what will change there...
Well there are taxes anywhere, one way or another.
Yeah. Lots of taxes, meh.
Cough cough update your address outside EU.
yes he is totally right. The things he has written are from the official MOSS regulations. ask your accountant...
He also was about stating that non-eu businesses can easily register with moss, without the need for being incorporated in the EU but to be able to handle the the B2C VAT.
you always need to differentiate between B2B and B2C, as @Lee's quote clearly states VAT is all about non-business customers.
Because you are a business and can provide a
valid VAT id - look at the mail from linode, they won't charge VAT either... but for B2C they have too and same goes for you. if you deal with a french B2C you shoud charge him french vat and declare through MOSS (as long as it's about the services falling under those regulations ofc)
cough cough - You mean providing wrong information about myself to my business partner? Sounds wrong and not beneficial for a trustful relationship.