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What if I change country to hosting service to avoid tax?
I'm about to purchase a yearly vps for 19.90 EUR . If I choose the country of my residence (HU) , I get a tax charge of 27% . What if I choose in whmcs , Falkland Islands and pay no tax at all!
In the leb that some of us use it for fun and not actual business, a 27% increase is not a small amount. Does really the provider care what data I fill in when I don't plan using it for business?
I'm not even registered financially here, I'm just an expat!
Who am I screwing if I choose Falkland Islands?
Comments
I use fake residence where i can and is not needed to send copy of ID or other things, because of this TAX/VAT..
Hungary's public finances.
It seems so, I just don't see how. Currently, I study in Hungary, my money weren't "made" in Hungary since I don't even work here. I get the idea of paying tax when I go out in the city and buy from a store. But why should Hungary get that tax money when the "store" is not in Hungary, transaction didn't occur in Hungary and I got no registered company in Hungary ! To my mind,makes no sense!
Welcome to EU - You are in Hungary so Hungary wants money on the money you spend externally.
You might fail some fraud checks based on your IP - unless you us a proxy server in the country you're pretending to be in :-)
It's reasonable in some ways, unreasonable in others. I assume you used public infrastructure to get there, i.e. roads, street lights. Your refuse gets collected, or whatever other public services you need to be functional there.
'Fair' would be picking whichever country you lived in for the past 183 days. You may have a hard time convincing a provider that you're non-EU (if they're so inclined), it's their responsibility to have two separate sources of information confirming you're not liable for VAT.
Here's a crazy idea - how about they stop extorting money by threat of violence (jail) and instead charge me for using those things when I do. Like, you know, how I pay when I use a hosting provider instead of getting taxed for public vps infrastructure.
But it's not gonna happen and you know why - the victims are net losers.
In that case deadbeef, they should abolish income tax and just charge more VAT, though it'd impact the quality of life of people in the lowest income brackets.
Not sure where you're from, but you may not know that European politics is generally more socialist, so no chance of us starving the ne'er do wells by that method
I dunno why there's such a backlash over the tax, from the consumer standpoint anyway. The 'net isn't the wild west and although international commerce can blur the lines a little, taxes should still apply. VAT MOSS has taken care of the bureaucratic hassle side of it.
Erm, how about no tax at all?
I live in the EU, I know what you mean. I'm not expecting this to go towards zero taxation in EU, it's much much more probable they'll go full EUSSR first
Because you pay for the same service an extra amount to a third party by means of force.
Still, if it's a hobby thing then you're paying a few euros more at LET prices. The worst off are EU small businesses not registered to pay VAT.
True enough, it's not very good for EU vs world competition... and you're legally obliged to pay it. Lots to complain about I guess. FWIW I've signed up for around 150 VPS plans in the past month and I could count on my fingers how many charged VAT (my billing address is in the UK).
Pay it, don't pay it... fact is most providers are extremely half arsed at verifying your true whereabouts.
It's not the money, it's the principle. I'm sure most people's VPS are mainly idling, it's not like the extra 20% will make anyone go broke.
It's the "I'll take it because I want to - problem?" thingy that is infuriating.
True, and good for them I'd say
The only principle is death and taxes!
Tongue in cheek suggestion, if convictions about VAT are compelling enough, North American and various tax havens have more favourable taxation and would be a good place to be based.
As an aside, someone could easily set up a hosting 'shell' company outside the EU and work within those margins. 27%...
@charos i just sent you a PM and is not necessarly to put fake name , etc etc just buy and you dont pay VAT and we are verry verry nearly (maximum 400km)
That's the thing - we're pushing death back (see average life span over the ages) - we can push back theft too. Theft is done by humans after all...
The bigger a company, the more legit ways to have less money stolen from - ask Apple for example
It's a bit of a non-issue for B2B, for larger companies. They'd claim the VAT back anyway.
Was referring to taxation in general
Very true.
It's stupid. I share a server with someone and if he had paid for it, there wouldn't have been taxes.
difficult to feel guilty about avoiding a few € of tax when you hear about the millions that are avoided by amazon/google/McD/starbucks. or the sports/celebs living in monaco/swiss/jersey/IoM
@charos where are you from?
If you just study in Hungary and still have a non eu address as well just use that address. If you are an international student and staying in the EU for six months or less, you are also eligible for a VAT refund.
Not anymore, unfortunately. You can thank commerce for that.
with all the problems with DoS, hacking and other exploits, it still feels like the wild west
See, but it isn't. It's just selectively enforced. If you're Sony or any other large corporation "doing business" on the internet, and somebody attacks you, then the feds will be on your tail in no time. But if you're just running a small forum and get hit with an attack, police won't give a damn.
I think it's safe to say that the internet has been taken over by commerce. They get the protection, and everybody else can go suck one.
EDIT: And yes, the above also applies to small companies - as in, them not being protected. Perhaps "big commerce" would be a better way to describe it.
Ah, the days where Compuserve charged $5 an hour to get online, speeds were slow and people just came online for information and chat. Damn those competitive pressures. (I'm too young to be in the 80s BBS 'crowd')
Not protection, reaction.
This is nothing new or unique to the Internet. Law enforcement has limited resources that they generally use in a manner to make the most impact. Obviously they're not going to waste a lot of resources on tracking down who is DDoS'ing Joe Blow's Wasabi Peas.
Nobody wants to pay taxes, but of course they all demand the services supported by them.
Then maybe they should start prioritizing those who suffer most from attacks, not those who have most money. A DDoS attack is certainly going to hurt a small VPS host a lot more than Sony.