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DigitalOcean starts to charge Canada Sales Tax
Just got this in my email:
Hi there,
In order to comply with Canadian law, DigitalOcean will begin charging sales tax to all customers located in Canada, beginning with October usage. Your first invoice including sales tax included will be sent on November 1, 2015. Your tax rate will be a percentage of your bill, applied after any applicable promotional credits.
To see your tax rate, which will vary by province or territory, please see our Tax Help. You will be able to see taxes displayed on your “Usage Summary” on October 1st by visiting the Billing page.
Please let us know if you have any questions - we're here to help!
Thanks,
Zach Bouzan-Kaloustian
>
Director of Customer Support
Comments
Hm, good ol' Canadian law eh? Quite interesting if you ask me, the fact that they don't even have an office in Canada....
lmfao, time to move to the states. And when they start charging taxes there, Africa here I come!
To be honest I use DO and other from small things because it's cheap and VAT free as I stay in the UK most of the time. VAT is not a killer but at 20% on a few $'s it adds up. A lot of the providers I use are now moving towards VAT.
What it is making me do is now pick UK based providers as I have little to loose now, so in that way I guess it's good.
Laws and regulations take a long time to catch up with tech. With an ever increasing % of many country's GDP spent online, it's a matter of time before all relevant taxes are applied to online sales.
probably that's exactly what was intended by making this unbeloved regulation...
Of that I have no doubt, however I guess I should as equally feel a bit ashamed for not supporting local all the way, I preach it often enough.
I wonder what they do with customers who have never given them an address.
I hope they just let them slide
ew hst sucks
They either have an office in Toronto or Vancouver, or launching a new location in Canada (east coast most likely). The only reason to charge GST/HST would be because they have a presence in the country, which I don't believe they have currently.
Edit: nothing on the careers page, so I'd guess Toronto is their next location they're launching in Oct/Nov
Please come to Vancouver, we don't need more Toronto or Quebec servers when it's already being dominated by OVH and such.
@Jar you don't have to say anything, but don't do anything if I'm on the right path. Hit 'thanks' if I'm way off base
@TheOnlyDK Vancouver is stupid expensive for rack space and quality bandwidth, Toronto makes more sense - my guess is that they want to expand to startups up here who require or prefer for their stuff to be on Canadian soil, and/or need better peering with Canadian ISPs (although that's typically possible via NYC/CHI/SEA)
If you want something in Vancouver, check out CACloud. ~$7/mo for a small KVM, ssd storage and 100mbps port (default is 10 for van, gotta pay $2 for 100). Last I checked they didn't peer with Telus/Shaw though and everything goes through Seattle
Hope for the best, plan for the worst. Couldn't they just use telus's DC? It shouldn't be that expensive.
LOL. Try to get a quote. Vancouver makes zero sense for population targeting or affordable bandwidth and good DCs. Seattle is way cheaper and just as close, Toronto has way more options for less and is closer to way more populated areas. Vancouver makes zero sense unless they like overpaying.
They could just be planning for a CAD office too, talent is fairly affordable here (compared to SF/NYC) and the visa process is expensive to get them into the states. Also the dollar is eating crap so there's an extra $.30 for every USD spent here. Dollars go a lot further.
Gonna stick with that
You heard it here guys. Half-Life 3 confirmed.
Keep in mind I neither did nothing nor hit thanks, so I found the loophole
It's likely, simply, that their revenues coming from Canada are now sufficiently big enough for the Canadian Tax authorities to notice.
DO are now large. The revenues they collect now equally so, and tax authorities are starting to 'notice' that their clients are buying stuff without paying tax on it
The moment DO then have a 'taxable presence' in a jurisdiction, they gotta pay the tax man, hence a Canadian cloud is 100% inevitably on the cards based on this move.