20% extra tax on EU webmasters =(

[mistman]

my host, 321host-it.com
has emailed me saying they are going to charge me an extra 20% on my hosting fees just cos i live in the EU due to some crap new tax legislation.

well they can take their US hosting and shove it up their arse.

If you're a EU host and pretty damn cheap leave some details and I can check you out

let the spamming begin =)

[mistman]

well im not sure if I want an EU host just some host that wont have to charge me for the extra tax.

[Coke]

This is 20% VAT which is not to be paid if you have a VAT-registration number (UID) which many european webmasters have.
If you do not have such an UID you should talk to your tax consultant to check if this is a good solution for you. Most of the times it is.

I understand that this is not going to please anyone but this 20% tax is not for our pocket and all hosts located in the EU that are turning over more than the local VAT-turnover limit are going to have to charge 20% (or their local VAT rate) on their hosting charges for all EU residents.

Here in Austria this revised legislation for ISPs is going to be in force starting June 1, 2001 and as legislation is always a little late here, I suppose most EU governments have already taken this step.

I just wanted to clear this up.

[mistman]

ok...

any non-eu hosts out there, that won't charge for the extra tax?

[andy2000]

20% vat but vat is only 17.5% in the uk and their in the EU

[$tandaman]

WTF i never heard of a TAX on bandwidth !?!

thats so weird.
Check us out if you want.
http://hosting.likewhoa.com

[Coke]

The VAT rate is different in all countries of the EU. Here it's 20%, in Germany 19.5% (I believe), in the UK 17.5%, in Sweden 25% or so and so on. And the VAT rate is always specified in the country the service or product is offered from.

Stan, now you heard about it, but I guess you just want some easy advertisment, so never mind http://bbs.adultwebmasterinfo.com/ubb/smile.gif

[$tandaman]

easy or not..VAT on hosting sounds stupid to me http://bbs.adultwebmasterinfo.com/ubb/smile.gif
i guess i just gained an approx 20% advantage over european hosts http://bbs.adultwebmasterinfo.com/ubb/smile.gif)))
to the one that i already have.

[richard]

Not really, if the customer is VAT registered, he can claim the money that he spends on his hosting BACK, when doing his VAT calculations.

You either add it on to the service, or you say it includes it in the serves. If it includes it, and is still competitive with the US host, then i can claim the 17% back, and is in effect 17% more competitive.

[Equinox]

Europe sucks, that's why I emigrated to the land of unlimited possibilities, the USA http://bbs.adultwebmasterinfo.com/ubb/biggrin.gif

Not really... just ended up studying here http://bbs.adultwebmasterinfo.com/ubb/smile.gif

[Coke]

Not really because most webmasters don't need to pay VAT http://bbs.adultwebmasterinfo.com/ubb/smile.gif The ones who do should consult a tax consultant.

[Coke]

Correct, Rich http://bbs.adultwebmasterinfo.com/ubb/smile.gif and if somebody provides his VAT registration number (UID) he isn't even charged the VAT.

[battuss]

Hmm, here in holland we cannot claim anything back from what you bought in amerika.
I dont pay vat for my server in america but if i would i couldnt claim it back, eventho im a company.

[Coke]

True, because there's no VAT to be paid in the USA and secondly because you can only claim back VAT if the seller is in the EU (and you of course too).

[Much0S]

If I am not mistaking in the Netherlands this rule is not yet in (luckily http://bbs.adultwebmasterinfo.com/ubb/smile.gif)