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Digital Ocean started collecting VAT for EU Customers
I've received this email from DO a moment ago. Looks like they've finally started to comply with the MOSS regulations.
Hi there,
In order to comply with European Union law, starting on August 1, 2015 DigitalOcean will begin charging VAT (Value Added Tax) to all customers located in the EU.
What this means for individuals
If you are a non-business customer of DigitalOcean in the EU, you do not need to take any action at this time. Beginning on September 1, 2015 your invoice will include a VAT charge reflecting a percentage based on your country of origin.What this means for businesses
If your business has a registered VAT ID, you can enter it into the VAT ID form on the “Billing” page.Your first invoice with VAT included will be sent on September 1, 2015 for usage in August. > We encourage you to enter your business VAT ID in the “Billing” page prior to August 31, 2015 to avoid any issues.
Thanks,
Zachary Bouzan-Kaloustian
Director of Customer Support
Comments
Finally taxes for the EU to give to Greece whee
Haven't got it. Maybe only for Vat applicable countries ?
Not to the EU. To the country where you're based for tax purposes.
Many companies were complying and the others were not. It's either everyone or no one, otherwise it's an unfair competition at the expense of companies who comply with regulations.
And I'm not discussing here whether the entire MOSS legislation is right or wrong, merely saying that since it applies to all companies doing business with the EU, it's not fair that some who didn't comply were taking competitive advantage over others.
It affects only EU B2B where buyer is not registered for VAT and B2C.
Paying ~$6 depending on country for their 512MB instance doesn't seem like a good deal.
Oh. Missed that part. Sorry about that.
(edited) In other words, this affects everyone in the EU.
Not if you have an EU VAT number and you are registered for VAT in your country. In that case the VAT is not charged.
i was just about to post this
American companies forcing VAT, this is wrong..
Sure but the question was "why do I not receive the mail" / "do I need to do anything".
Just received this one, too. After my credit expires with them, they're only going to be used for testing.
My server has a terrible IO, around 20-30MB/s on SSD, according to test. My raspi does 10MB/s with its microsd card.
@TarZZ92 It's interesting though, as I haven't heard about any enforcement actions in regards to MOSS yet, and they decided to comply after 8/9 months since the legislation came into force.
Sorry. I misunderstood your post.
this is THE LAW
translated into english - the price you pay will go up by XX%
Well, DO does have a lot of assets in EU.
nope. not for American companies from my understanding. you cannot force your own laws on other countries.
What about charging customs duty and/or VAT on entry to the EU for goods? Similar thing.
i am no tax expert however it just seems wrong (maybe i might research this further).
If your in the UK. You'll be charged.
I'm not an accountant or solicitor, but I do believe that it is the law. EU law, applicable for ANY company selling INTO the EU. policing it is a different matter though
The USA and EU have Tax Treaties that mandate this.
If a US corporation is non compliant, the EU Tax authorities can go after EU based assets, or ask the US Govt to go after US based assets.
The USA and EU (and other states) have signed up to this for quite some time (since 2008 iirc) but it's only really come into force this year for all.
Agreed, but since you reclaim it anyway that shouldn't really bother anyone.
Yeah, it feels so as this are intangible goods/services. The concept itself is here for >1000 years :-).
It's just stupid that's all. And a little unfair that we have to await 3 months to claim it back... But oh well.
The way to go with DO in such cases is just to make a new derplet, possibly in a different location, and nuke your current one. When I was using them "seriously" for any length of time, I was initially making 5 derplets in the same location and then keeping only the best-performing one. The difference in disk and CPU performance between the worst and the best one in some cases was pretty shocking.
If you are VAT registered in the EU, enter your VAT ID in their website and
VAT WILL NOT BE CHARGED
Just like any EU company that is VAT registered can do with any EU based provider (like us).
The ONLY people who will be charged, are unregistered 'people' - not registered companies.
It's 100% a B2C issue.
Which is 95% of those reading this forum, so what's your point.
My point was to correct the confusion above that VAT registered entities / those who could reclaim VAT would be charged in the first place.
anyone outside of EU won't be charged VAT
In the absense of a tax treaty resolving this specifically, I'm pretty sure you're right. It may be illegal for the citizens to buy things without paying taxes, so it may be viewable as a polite thing to do to assist willingly law abiding citizens over there. I don't know I'm just guessing, totally not my area of expertise.
I'm just an armchair expert as well though. I know I'm not complying with MXroute. In my view, not my problem. I don't keep up with the tax code of places I don't live, I'll let people who live there do that
Wow. I haven't really checked. I just have the off-site copy of the status page with them so wasn't really bothered with the speed, to be honest.