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DigitalOcean isn't charging EU VAT AFAIK at the moment.
They do.
@gh0st007 Missed that then, as a few months ago they claimed not to charge it.
If a company has no presence in the EU then I doubt it can be enforced for them so ColoCrossing etc., might be fine by not complying.
DO send me an e-mail I think on the 30th last month that I had to give them my VAT ID (registered company so no VAT for me) before the 1st of august.
Bankrupt? Who is going to go bankrupt paying tax that is much needed? And it's generally a good thing as well. Cheaper products for us brits, fuel, equipment, etc..
Just FYI they're has been two filling months within the last 6 months.. One was recently. and one was in March I believe.
Has anyone gone bust? Who knows, as long as you've got a good accountant.. Your good to go.
Edit2: the EU Is clamping down on Tax Evasion.. so good luck.
I do. I also sells drugs and rape women.
Who doesn't?!
Must be funny to live in mexico
Most hosts I use charge me my local tax percentage now - so a couple of % lower than before.
ColoCrossing primarily does B2B, so then there's no VAT anyway
wanna come? we rape anything it moves, specially foreigns
Sure, when I can bring some Bavarian food and beer with me!
Small time companies who don't charge VAT and get a bill by the end of year or next year.
To re-phase the question, who has EU assets(clients or servers) and don't charge VAT yet? Would be interesting to know who evades VAT and use shady practices to compete on price against legit provides who pay all the taxes and VAT. Name & shame!
Will be worth making a list so we can avoid them and give at least some advantage to legit and honest providers such as DigitalOcean or RamNode.
Avoiding VAT is easy, actually, it is some kind of business advantage for me. I am exporting almost every service I do and do not have to collect VAT, while when I buy things for the activity I have deductible VAT, so, to collect from the state. Since it takes 180 days and an audit to release you even the smallest amounts, I prefer to buy second hand laptops from EU and sell to friends charging VAT so I can balance the books. I sell at the dealer price I have+VAT, I have happy friends and I recover VAT.
IMO if the provider has no assets in EU it should not pay EU vat - Same as EU customers pay no sales tax to US companies. That system only works if both sides do it, else it is plain unfair.
We dont charge VAT in HK. Why would/should we? Our EU stuff will eventually be required to though but not until the threshold is reached.
There is no threshold for EU VAT - everyone pays. Nobody says you need to pay unless you have EU assets.
You know what the accountant does right?
VAT is filed each quarter in the UK, payable by the 7th on the 4th month.
Yes I do.
>
we do the same
+perfumes
Only EU citizens pay VAT. Assets have nothing to do with paying VAT.
EU registered companies must all collect VAT unless their turnover is below a certain threshold. The company does not pay VAT.
International companies are supposed to register and collect VAT but only the larget service providers can be compelled to do so.
This I agree creates a level playing field. I hear it all the time that company x from the USA has a rack right beside company B from the UK within a London DC, their services are similarly priced but that 20% VAT rate is without doubt a handicap for the UK company.
But the USA firm must be placed in the same position if the DC was in the US or wherever.
No EU presence, no tax payable.
Not quite. If I only want to do business in the UK then standard rules apply and I don't need to collect VAT under a certain threshold. If I want to do business across Europe then the threshold is removed and I need to charge it for everything.
Whichever way you in at least the UK, they will catch up with you. Might not be this year, may not even be for a number of years, but when they do catch up and your records are not in order you will get hit with a liability likely far in excess of what you owe and be held personally liable.
Right or wrong it is what it is for the moment.
Source? Not that I don't trust you, but with I have read nothing of the sort either in the UK or Lithuania. As far as I am aware, and as far as every accountant consulted has advised, there is no requirement to register for VAT until the threshold has been met.
With that in mind, registering for VAT has certain benefits, like being able to acquire goods and services free of VAT (or rather, have the ability to claim it back). It is my understanding that the fact that a non-VAT registered entity must still pay VAT and has no mechanism to claim it back will somewhat level the playing field.
It seems strange that you cannot apply VAT to hosting for non EU nationals. VAT is intended as a tax on consumption within the EU. So tourists still pay VAT when they visit any EU country. Perhaps hosting can be classified as a service 'consumed' in the host country, rather than the customer's. This would then level the playing field.
I'm not 100% sure on this, but apparently you can fill in a form to claim the tax back when leaving the country, at least in the UK.
I was not clear.
So for me in the UK with customers within the EU I would need to register under Moss regardless of whether I meet the VAT threshold in the UK. I need to charge VAT to all my EU clients however I do not need to charged VAT to my UK clients unless I meet the threshold.
no, it only applies for electronic services e.g hosting
Does buyvm charge VAT? @Francisco
No, we're more than likely to just eat it on behalf of our users anyway.
We charge enough that we can ride out a lot of things to smooth things out.
Francisco
What does it mean? You are aware payments for Q1 and Q2 are past due already, are you? Do you have a VAT number yet?
So nice of you to eat it for customers. Hands down on that.
Until some EU gov requests it BuyVM does not need to give a shit about it - EU law clearly states that non-knowledge is an acceptable excuse until end 2017 (at least in Austria)
Yes, it is. But once notified, they are due to pay everything from 1.1.2015
Doesnt your country have some tax inspections? Because what you are doing is clearly illegal. You can't sell company stuff to a private person without charging VAT unless you take the money personally and don't book/account it.
But then, tax inspection comes, see there is no 5 laptops which are owned by company, not sold out according to the books as you have not accounted it, in the company office / registration and boom - figures out what you did in 10 minutes, lots of people did that 5-10 years ago in my EU country as well, but 2015...