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Comments
I don't get it, and to be honest I was waiting for a nip slip or something exciting.
Someone will get it
Any word on allowing 3 year purchases or 2 years at least?
Surely he would have just said that then?
Innocent 'til proven guilty old bean.
A location change and means to update contact info are reasonable.
I've actually spent yesterday/today working through the various providers (with a little form filling automation) updating my details from my own personal (sole-trader/Canada) company to details of a Limited Company in the UK.
FWIW some prevent you being able to change your name/email, some don't. Not many accommodate VAT specifics, I imagine, because they're handcuffed by the system they use. At any rate, the customer can provide whichever details and it's up to the company to use at least 2 pieces of separate info to decide whether to charge VAT or not.
Indeed, but he is the one that asked "What steps are necessary to get a location change?" seems a bit stretched to interpret that as wanting to provide a VAT number, that's all
I will raise your edit with my own.
The issue now approaching is that many people will start trying to switch location to avoid the change, some providers will allow it, others will not.
Personally if I need to pay the 20% VAT rate then I will so long as I know it ends up here in the UK. The UK is has many issues, but it's a good life compared to some areas in the world so I like to pay my way where It's right to do son.
Not really sure who this is going to play out, I suspect questions are going to be asked about the rapid reduction in EU residents using hosting services :P
Would these new rules apply if you lived in the EU but had citizenship in another country, with an address?
Or is it physical location?
I guess if you have citizenship in another country then yes, use that address. It's physical location but I guess there are lots of ways around this.
Totally agree. I've just built some software that had to take into account the VAT regulation and to be honest, I think both company and customer will try use some poetic license/interpretation to get the best of both worlds (being fair and not losing sales).
I don't mind it personally, but think the competition angle from non E.U. companies will play a more prominent role in the conversation. Alternatively the USA (pretty much the other major western market) will also clamp down on collecting tax.
It's a bit of a mess but it is what it is. Fair play to Ramnode on this occasion to paying tax where it's due. I've got respect for that instead of trying to fly under the radar as a company thinking it's too small to matter. I haven't counted them up but certainly not all the providers I'm signed up to have indicated pricing changes due to this legislation, which suggests they aren't bothering.
That's interesting, but for myself means absolutely nothing as I live in Australia VAT doesn't get applied anyway.. still, good to know, thank you.
Or just use a company with a VAT ID as I am doing. In Romania it is pretty costly, I pay some 200 Eur a month maintenance, but in other countries it is cheaper and does not require you to go there, you can register it in a non-eu country so no VAT will be needed.
Therefore, tr1cky can change location to the country where he has his company, for example, and others might wish to do the same.
We never allowed these changes to avoid people filling in bogus details after doing the first payment and getting approved, but a ticket will solve the issue.
EU VAT only apply to US or all other country?
PM or ticket them, the law is already effective from 1st Jan, if they want to do a deal like that they are hardly going to confirm it publicly.
I am still sorting it out, the UK tax authorities have agreed to soft touch measures for the first 6 months giving us some breathing space to get compliant, if I end up being liable for VAT for the proceeding period that is fine.
Surprised any USA company is complying though, they have no enforcement laws in place yet or even in principal decisions, if I was a non-EU company I would be ignoring this big time.
Lucky for me I don't have EU clients. If they believe I am mistaken, I would be happy to take a look at their copy of my client database.
@jar or their copy of paypal's transaction list from the EU to your paypal account ;-) Remmeber, papyal in Europe is a registered bank in Luxembourg and should comply with all kind of regulatory crap as a result.
Maybe I'll start billing in fruits and canned goods then
haha
Not true.
.
Also I am going to signup
Hmm I'll trade you two apples and one can of chicken noodle soup for a year of service ;-) /s
time to start a hosting currency, I vote for pasta twists, 4kg of pasta twists = $1
Haha, difidate dalle imitazioni, The real issuing bank must be in italy.
I vote for beers. 1 beer = $1
Let's say a 3 GB RAM Xen costs 4 Beers monthly.
Hey, what's wrong with BC? Make a company in seychelles, rent it all the hardware and support, sell from it. Make sure it is owned by someone else.
Tax fraud manual, page 2.
This is why the IT industry iis moving shop in the cayman islands and pay the lowest taxes in the world, because of stupid regulations like these.
I'm not going to argue this or pretend to be an expert myself, but it's a significant liability for any US company to just ignore VAT after Jan 1 if they have a decent amount of EU customers.
Agreed. It'd be dangerous to end up with a legally bound tax bill some years down the line. It's not like you could go cap in hand to the customers and ask them to back-pay it.
I am just saying, and trust me I have looked, not a single written agreement is in place that would make you liable with your tax authority.
Ramnode has a place of supply/place of business within the EU (the NL location), their situation is very different from US suppliers that do not have any EU presence.
Fair point.
And it looks like not many will come here, at least apart from the big ones.
I wonder if this decision was made out of the minds of the EU bureaucracy or was "suggested" by some big players, because it does not seem the reverse to be true, I mean US forcing EU states to collect their tax from US customers.
Just wait, this will happen soon too. And then other countries will follow. Then even more regulations and hurdles will follow and in the end people will be confined to hosting only in their own countries. Much easier for the governments to monitor and control everything this way.