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Question about tax
I'm not US resident, but i'm using USA Business Hosting and recently (from january 2021) they added recurring tax to my monthly invoice. As far as i know there is no tax for non us resident or may be i'm wrong ?. I'm asking their billing dept they didn't give explanation.
note : been more than 2 years with them.
Please i need some enlightment here.
Thank you
Comments
If it's physical goods, such tax can be avoided.
If it's digital service that is rendered on their location, sometimes the tax will be applied.
That's probably the explanation.
yeah, may be. But why now, not from 2 years ago lol
and they said if i need tax reimbursment i should ask my local tax authority.
It depends on the local law, their law, not yours.
Do they say on the invoice what type of tax you are being charged? E.g. State Tax or VAT Tax etc.
In most cases, this is related to the address provided in your account personal information. Some providers may require supporting documents.
You can ask the provider how foreigners are exempt from tax.
It said "Total Recurring Tax"
Total Recurring Fee
$492.87
Total Recurring Tax
$49.30
Well, sue them.
Yes. I'm already provided my tax id and show i'm not us resident.
I need some good explanation, if i'm being charged for tax then remitted my country i'm okay. If not .. still seeking the law that applied.
@logaritse what is the country you have registered on your profile with this company? Is it an EU country?
What country is in your billing/physical address?
i'm Asia - Indonesia.
I'm looking for tax charging information at their website but can't find it, like AWS - https://aws.amazon.com/tax-help/
They clearly give information about tax for non us resident.
Would seem like they are applying a US-based state tax onto your invoices which depending on the state could be required by them to do to everyone.
I'm using indonesian address.
Like I said in my first reply, it depends on local tax laws.
I suggest you read over their local tax laws. Some places do require "services" to be taxed no matter where it is sold to.
Got the explanation, their business also registered in my country thats why they collect tax from ID residents. Thank you all
But if company isn't not registered in my country they should not collect the tax right ?
Again, it depends.
All right, thank you for the information deank.
There’s no room for discussion whether they’re right or wrong. They’re not going to pay any tax professional to answer your questions, they’re either doing what they were told to do by theirs or using it to pocket extra cash. Also possible they live in California and they’re taxed for merely existing so they’re passing it on. But they may not know how to answer you and they won’t pay for time from a legal professional just to answer it, they’ll expect you to hire your own to answer your questions.
Just buy from European provider and you won't be taxed.
Thank you for the clue, unfortunately i'm already satisfied with their service.
Yes but at least they show in their billing FAQ and make tax section like AWS so customer won't confused. Because suddenly this recurring tax is exist.
Thanks
So for the past 2 years you weren't taxed and all of a sudden you're being taxed and have been taxed since the beginning of this year?
Then you should just get in touch with them and have them clarify things with you for peace of mind.
If mail doesn't work, call.
Nope, no tax at all. They begin charge recurring tax start from januari 2021.
They already give explanation, their company is registered in my country and they start to collecting tax.
You can always sue to get more money back.
The mental agony you had to go through, fights that the tax incurred with your other half, demand 50,000 for damages.
hehe lol. Just want to make sure where the money goes, if remitted to my country i will not sue them. Just let my customer know that i'm double taxed doh
I feel that pain deep in my testicular region, where it frequently kicks me.
I remember that awful feeling.. And life expectancy may suffer. But it's possible to set up business in such way, that you won't experience these kicks in weeks. Takes time and other parts of body can still be striked occasionally though.
Most fun has been payroll taxes for employer and employee. As both, it’s like being split roasted by two old white men, which happens to not be my fetish.
So, a quick Google search https://www.reuters.com/article/us-indonesia-tax-digital-idINKBN28B4RK
Indonesia now collects 10% VAT on digital services, which is precisely $49.30 of $492.87
You probably know your government's websites better than I do, so you can confirm.
Nope... EU started the concept of taxing digital services and requiring all sellers globally to collect and remit tax, regardless if they are registered in Europe (or not.)
Enforcement is a different matter entirely. But I would expect that two entities which do the same thing would mutually agree to enforce each others tax laws, at some point. This will become more common soon. Even some U.S. states have started doing it too.
Your state TX lost some of the most tax revenue during this pandemic so far... I bet TX is the next state to start taxing digital services as well.