Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!


Digital Ocean started collecting VAT for EU Customers
New on LowEndTalk? Please Register and read our Community Rules.

All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.

Digital Ocean started collecting VAT for EU Customers

ClouviderClouvider Member, Patron Provider
edited July 2015 in Providers

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

«13

Comments

  • 4n0nx4n0nx Member

    Finally taxes for the EU to give to Greece whee

    Thanked by 2dediserve NeoXiD
  • Haven't got it. Maybe only for Vat applicable countries ?

  • ClouviderClouvider Member, Patron Provider
    edited July 2015

    4n0nx said: Finally taxes for the EU to give to Greece whee

    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.

    Thanked by 1muratai
  • ClouviderClouvider Member, Patron Provider

    sdglhm said: Haven't got it. Maybe only for Vat applicable countries ?

    It affects only EU B2B where buyer is not registered for VAT and B2C.

  • ManiacManiac Member

    Paying ~$6 depending on country for their 512MB instance doesn't seem like a good deal.

  • Clouvider said: It affects only EU B2B where buyer is not registered for VAT and B2C.

    Oh. Missed that part. Sorry about that.

  • rm_rm_ IPv6 Advocate, Veteran
    edited July 2015

    Clouvider said: It affects only EU B2B where buyer is not registered for VAT and B2C.

    (edited) In other words, this affects everyone in the EU.

    Thanked by 1inthecloudblog
  • ClouviderClouvider Member, Patron Provider

    rm_ said: 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 :D

    American companies forcing VAT, this is wrong..

  • rm_rm_ IPv6 Advocate, Veteran

    Clouvider said: 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.

    Sure but the question was "why do I not receive the mail" / "do I need to do anything".

  • GM2015GM2015 Member

    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.

    Thanked by 1Clouvider
  • ClouviderClouvider Member, Patron Provider

    @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.

    Thanked by 1TarZZ92
  • ClouviderClouvider Member, Patron Provider

    rm_ said: Sure but the question was "why do I not receive the mail" / "do I need to do anything".

    Sorry. I misunderstood your post.

  • BruceBruce Member

    American companies forcing VAT, this is wrong..

    this is THE LAW

    What this means for individuals ... you do not need to take any action at this time

    translated into english - the price you pay will go up by XX%

    Thanked by 1Clouvider
  • perennateperennate Member, Host Rep

    Clouvider said: 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.

    Well, DO does have a lot of assets in EU.

  • Bruce said: this is THE LAW

    nope. not for American companies from my understanding. you cannot force your own laws on other countries.

  • ClouviderClouvider Member, Patron Provider
    edited July 2015

    TarZZ92 said: 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.

  • Clouvider said: 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).

  • @Clouvider said:
    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.

    If your in the UK. You'll be charged.

    Thanked by 1Clouvider
  • BruceBruce Member

    @TarZZ92 said:

    nope. not for American companies

    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.

    Thanked by 1Clouvider
  • ClouviderClouvider Member, Patron Provider

    MSPNick said: If your in the UK. You'll be charged.

    Agreed, but since you reclaim it anyway that shouldn't really bother anyone.

    TarZZ92 said: i am no tax expert however it just seems wrong (maybe i might research this further).

    Yeah, it feels so as this are intangible goods/services. The concept itself is here for >1000 years :-).

  • MSPNickMSPNick Member
    edited July 2015

    @Clouvider said:
    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.

    Thanked by 1Clouvider
  • rm_rm_ IPv6 Advocate, Veteran
    edited July 2015

    GM2015 said: My server has a terrible IO, around 20-30MB/s on SSD, according to test.

    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.

    Thanked by 3Clouvider GM2015 asf
  • 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.

    Thanked by 1Clouvider
  • rm_rm_ IPv6 Advocate, Veteran
    edited July 2015

    dediserve said: The ONLY people who will be charged, are unregistered 'people'

    Which is 95% of those reading this forum, so what's your point.

  • @rm_ said:
    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.

    Thanked by 1Clouvider
  • BruceBruce Member

    anyone outside of EU won't be charged VAT ;)

    Thanked by 1Clouvider
  • jarjar Patron Provider, Top Host, Veteran
    edited July 2015

    @TarZZ92 said:
    nope. not for American companies from my understanding. you cannot force your own laws on other countries.

    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 ;)

  • ClouviderClouvider Member, Patron Provider

    rm_ said: The difference in disk and CPU performance between the worst and the best one in some cases was pretty shocking.

    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.

Sign In or Register to comment.