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Hetzner begins to charge tax for US clients?

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  • angstromangstrom Moderator

    @jar said: Though I am confused by a single figure for the whole state. Mine, for example, is actually 6.25%. Though I usually spend 8.25% because most business isn't conducted in Harrison county. But 8.5% doesn't match anything I'm immediately aware of.

    Just curious: so the state of Texas doesn't have a uniform sales tax rate?

    Anyway, I wonder why Hetzner has begun with Texas: do they already have some office there?

  • jarjar Patron Provider, Top Host, Veteran

    @angstrom said:

    @jar said: Though I am confused by a single figure for the whole state. Mine, for example, is actually 6.25%. Though I usually spend 8.25% because most business isn't conducted in Harrison county. But 8.5% doesn't match anything I'm immediately aware of.

    Just curious: so the state of Texas doesn't have a uniform sales tax rate?

    Anyway, I wonder why Hetzner has begun with Texas: do they already have some office there?

    It's a 6.25% state sales tax and then the county can add up to 2% for themselves as desired or needed.

    Thanked by 2angstrom Hetzner_OL
  • OhJohnOhJohn Member

    It's about nexus.

    In other words: what's the amount you sell per year w/ customers in that state/region/county/city. If you are over a threshold in some states/region/county/city, you have to collect US sales tax there.

    Like I said, start reading at taxjar, esp. if you are a provider.

    Thanked by 2angstrom Hetzner_OL
  • jarjar Patron Provider, Top Host, Veteran

    Maybe I'll cancel enough servers by then that the rest of you won't have to pay taxes anymore lol

    Nah I'm only about 4k/m in, or was.

    Thanked by 1OhJohn
  • OhJohnOhJohn Member
    edited October 2021

    @jar
    Actually with a threshold of e.g. 100k in most US states/counties/regions, that could even work. I mean you are doing 48k a year already...

    Edit: looked it up again, for Texas it's actually 500k for last year. But so you are still a tenth of that.

    For providers in general (and inter-USA as well as in having customers in other states): look up "economic nexus" in regard to "South Dakota vs Wayfair". It Is getting really complicated for digital goods/services/hosting/etc.

    Thanked by 1jar
  • jenkkijenkki Member

    Spend your taxes in Texas for taxi.

  • spambaitspambait Member
    edited October 2021

    Something is brewing for sure.

    Check out:

    AS213230
    5.161.0.0/16
    2a01:4ff::/40

    There seems to be infrastructure up and running in Ashburn, VA peering with CenturyLink and Telia. Example:

    1. AS???    ???                                                              100.0   10     0    10   0.0   0.0   0.0   0.0   0.0   0.0  0.0  0.0  0.0  0.0
      2. AS???    ???                                                              100.0   10     0    10   0.0   0.0   0.0   0.0   0.0   0.0  0.0  0.0  0.0  0.0
      3. AS???    ???                                                              100.0   10     0    10   0.0   0.0   0.0   0.0   0.0   0.0  0.0  0.0  0.0  0.0
      4. AS???    ???                                                              100.0   10     0    10   0.0   0.0   0.0   0.0   0.0   0.0  0.0  0.0  0.0  0.0
      5. AS1299   qro-b2-link.ip.twelve99.net (62.115.188.140)                      0.0%    0    10    10   0.7   0.4   0.7   0.9   0.2   0.6  0.3  0.2  0.3  1.3
      6. AS1299   mny-b2-link.ip.twelve99.net (62.115.123.238)                      0.0%    0    10    10   9.3   9.2   9.3   9.6   0.1   9.3  0.2  0.2  0.4  1.2
      7. AS1299   mdc-b1-link.ip.twelve99.net (62.115.124.12)                       0.0%    0    10    10  12.9  12.7  13.3  17.8   1.6  13.3  0.0  1.1  5.0  9.1
      8. AS1299   hou-b1-link.ip.twelve99.net (62.115.114.254)                      0.0%    0    10    10  21.3  21.1  21.4  23.0   0.6  21.4  1.8  0.4  1.8  3.7
      9. AS1299   atl-b24-link.ip.twelve99.net (62.115.116.47)                      0.0%    0    10    10  34.3  34.3  34.5  34.7   0.1  34.5  0.0  0.1  0.3  1.1
     10. AS1299   rest-bb1-link.ip.twelve99.net (62.115.125.190)                    0.0%    0    10    10  50.6  50.6  50.7  50.8   0.1  50.7  0.2  0.1  0.2  0.9
     11. AS1299   ash-b2-link.ip.twelve99.net (62.115.123.123)                      0.0%    0    10    10  50.4  50.4  50.7  52.5   0.6  50.7  0.3  0.3  1.9  2.0
     12. AS1299   hetzner-svc080622-ic370437.ip.twelve99-cust.net (62.115.149.65)   0.0%    0    10    10  50.8  50.8  52.0  56.8   2.2  52.0  4.8  2.3  6.0 18.1
     13. AS213230 spine1.cloud1.ash.hetzner.com (5.161.0.74)                        0.0%    0    10    10  48.7  48.4  50.3  64.1   4.9  50.1 15.4  3.3 15.5 31.2
     14. AS???    ???                                                              100.0   10     0    10   0.0   0.0   0.0   0.0   0.0   0.0  0.0  0.0  0.0  0.0
     15. AS213230 ash-dc1-r21-s10.your-cloud.host (5.161.9.88)                      0.0%    0    10    10  47.8  47.7  47.8  47.8   0.0  47.8  0.0  0.0  0.1  0.3
  • ErisaErisa Member

    @spambait said:
    Something is brewing for sure.

    Check out:

    AS213230
    5.161.0.0/16
    2a01:4ff::/40

    There seems to be infrastructure up and running in Ashburn, VA peering with CenturyLink and Telia. Example:

    Yes they also updated their terms to include a whole section about US services, registered a company called Hetzner US LLC and imported server hardware from Germany to Ashburn, before replacing all the header text on their website with a day countdown to a big announcement.

    It's uh, pretty obvious what's happening by now.

  • jon617jon617 Veteran

    Hetzner local sales tax began as of my December invoice. I'm in the US.

    Thanked by 1Not_Oles
  • NetDynamics24NetDynamics24 Member, Host Rep

    We are also affected in NM!

  • OhJohnOhJohn Member

    It will always depend on the tax threshold for your sales tax region in the US. E.g. if they do more than $100k in Alabama per year (don't nail my on the exact numbers), they'll start to register there and collect taxes.

  • NetDynamics24NetDynamics24 Member, Host Rep

    Wondering if it worths to move our LLC to Wyoming.

  • SirFoxySirFoxy Member

    @NetDynamics24 said:
    Wondering if it worths to move our LLC to Wyoming.

    Not really, you're foreign anyways.

  • jiggawattjiggawatt Member

    @angstrom This has nothing to do with having an office or legal entity in a given place. This is a common misconception. Big companies like Hetzner are big targets for tax authorities, so they will generally comply, regardless whether there is legal presence in the jurisdiction.

    And Belarus taxes digital services, in the exact same way that Russia and EU does. Not sure why this is surprising.

  • angstromangstrom Moderator

    @jiggawattz said:
    @angstrom This has nothing to do with having an office or legal entity in a given place. This is a common misconception. Big companies like Hetzner are big targets for tax authorities, so they will generally comply, regardless whether there is legal presence in the jurisdiction.

    And Belarus taxes digital services, in the exact same way that Russia and EU does. Not sure why this is surprising.

    A bit slow reaction time on your part given that this thread and my post(s) are from October of last year, but thanks for the clarification nonetheless

  • NetDynamics24NetDynamics24 Member, Host Rep

    @SirFoxy said:

    @NetDynamics24 said:
    Wondering if it worths to move our LLC to Wyoming.

    Not really, you're foreign anyways.

    So what? Hetzner is charging NM but not Wyoming.

  • alentoalento Member, Host Rep

    @jar said: Though I am confused by a single figure for the whole state. Mine, for example, is actually 6.25%. Though I usually spend 8.25% because most business isn't conducted in Harrison county. But 8.5% doesn't match anything I'm immediately aware of.

    https://comptroller.texas.gov/taxes/sales/remote-sellers.php

    General Rule

    Local use tax is due at the location in Texas where the order is shipped or delivered when the order is not received or fulfilled from a Texas place of business. You can use our Sales Tax Rate Locator to search for tax rates by address.

    The Single Local Use Tax Rate

    The single local use tax rate is an alternative local tax rate that remote sellers can use instead of collecting and remitting the total local tax in effect at the destination address. The current single local use tax rate is 1.75 percent, and the rate is published in the Texas Register by Jan. 1 of each year.

    Remote sellers can choose to collect the alternate single local use tax rate. Businesses located in Texas are not remote sellers and cannot use the single local use tax rate for sales.

    Still 6.25 + 1.75 is not equal to 8.5 ....

  • armineskandaryarmineskandary Member

    Hey there 👋
    I've moved to a country where there is 0 tax for hetzner
    If I change my country in the account details section will it be 0 Vat or my account will get banned?

  • lq9xlq9x Member

    @armineskandary said:
    Hey there 👋
    I've moved to a country where there is 0 tax for hetzner
    If I change my country in the account details section will it be 0 Vat or my account will get banned?

    Holy necroposting batman. You should be banned.

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