Hostgator Adds VAT for EU Customers

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  • wehateporn
    Promoting Debate on GFY
    • Apr 2007
    • 27176
    #1

    Hostgator Adds VAT for EU Customers

    Who else paid more this month? Are other large US hosts doing this too?

    https://support.hostgator.com/articl...-tax-vat-rates

    I would have shopped around, apart from the fact that by coincidence or conspiracy, they migrated me to a much faster server just 1 week before the price hike. I received an email one day saying "We're moving you to a much better server", they moved me and it is a lot quicker, then the next week the price went up.

    If they did that on purpose hoping to keep me, it worked.
    Tags: None
    • StariaDaniel
      Confirmed User
      • Oct 2007
      • 415
      #2
      Well, as far as I know they have to do it (maybe if you make more than X Euro in the EU). Most don't and try to fly "under the radar", but once you get to a certain size you can't avoid it anymore.

      Not a big deal really as you can get the tax back easily if you've a company in the EU.
      YezzClips.com - Sell your clips and photosets - Promote YezzClips Clipstores and get 20% revshare for life
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        • mineistaken
          See signature :)
          • Apr 2007
          • 29656
          #3
          Originally posted by StariaDaniel

          Not a big deal really as you can get the tax back easily if you've a company in the EU.
          If you are VAT registered company that is. There are many companies that are not VAT registered. Alsmo majority of hostagtor clients are private.
          Also its not "getting back", you get it back only if you generated more VAT for the country than you spent. Of course in most cases it is so.

            Comment

            • fatfoo
              ICQ:649699063
              • Mar 2003
              • 27763
              #4
              Specific tax rates are applied. That is interesting. They moved you to a faster server and they keep you. Not every host is treating EU differently from the rest of the world. Internet sales are worldwide international sales. Although the seller is geographically located in some country, the seller could move to a different country for some time. These kinds of activities could really make someone even more rich.
              Send me an email: [email protected]

                Comment

                • ottopottomouse
                  She is ugly, bad luck.
                  • Jan 2010
                  • 13177
                  #5
                  They did send out a load of confusing emails about it a couple of months ago.
                  ↑ see post ↑
                  13101

                    Comment

                    • Spudstr
                      Confirmed User
                      • Jan 2003
                      • 2321
                      #6
                      Originally posted by StariaDaniel
                      Well, as far as I know they have to do it (maybe if you make more than X Euro in the EU). Most don't and try to fly "under the radar", but once you get to a certain size you can't avoid it anymore.

                      Not a big deal really as you can get the tax back easily if you've a company in the EU.
                      More like they established a corporation in the EU and now have to collect vat. No US company would ever have to collect VAT unless they have a place of business in that country.
                      Managed Hosting - Colocation - Network Services
                      Yellow Fiber Networks
                      icq: 19876563

                        Comment

                        • StariaDaniel
                          Confirmed User
                          • Oct 2007
                          • 415
                          #7
                          Originally posted by mineistaken
                          If you are VAT registered company that is. There are many companies that are not VAT registered. Alsmo majority of hostagtor clients are private.
                          Also its not "getting back", you get it back only if you generated more VAT for the country than you spent. Of course in most cases it is so.
                          Yes, of course, you've to have a VAT-registered company. You don't need to generate more VAT then you spend. I make most of my revenue vat-free (outside EU) and get the VAT is spent back anyway (so I make 100 VAT, spent 500 VAT, the tax authority wires me 400 Euro). I think that this is handled this way EU-wide.
                          YezzClips.com - Sell your clips and photosets - Promote YezzClips Clipstores and get 20% revshare for life
                          YooGirls.com - Sell your non-nude content - Promote Yoogirls Clipstores and get 20% revshare for life
                          [email protected] • ICQ #464114379

                            Comment

                            • Antonio
                              Too lazy to set a custom title
                              • Oct 2001
                              • 14136
                              #8
                              Originally posted by mineistaken
                              If you are VAT registered company that is. There are many companies that are not VAT registered.
                              If I'm not mistaken, you have to register for VAT once your annual turnover goes over certain threshold and at least here, that amount is not that high

                                Comment

                                • EddyTheDog
                                  Just Doing My Own Thing
                                  • Jan 2011
                                  • 25433
                                  #9
                                  Originally posted by Spudstr
                                  More like they established a corporation in the EU and now have to collect vat. No US company would ever have to collect VAT unless they have a place of business in that country.
                                  That's what I was going to say...

                                  Also, as far as I know everyone in the EU has to collect VAT - You don't have to register a VAT number until your turnover is over a certain limit - You can register before you reach that turnover so you can claim back VAT on expenses.....

                                    Comment

                                    • StariaDaniel
                                      Confirmed User
                                      • Oct 2007
                                      • 415
                                      #10
                                      Originally posted by Spudstr
                                      More like they established a corporation in the EU and now have to collect vat. No US company would ever have to collect VAT unless they have a place of business in that country.
                                      That's not true, there are special conditions and thresholds - but technically everyone doing business with EU residents or companies has to pay VAT

                                      See:
                                      http://www.eurovat.com/faq.htm
                                      What does "VAT registration" mean?
                                      A North American company sometimes conducts business, such as selling goods or services within the European Union, that may require VAT registration with the local tax authorities. [...]
                                      Of course most US companies (especially smaller ones) neither know about that nor will they ever be forced to pay it. But once you become BIG this may come back to you. This isn't well known as most companies big enough also have a place of business in the EU (like Amazon, etc.)
                                      YezzClips.com - Sell your clips and photosets - Promote YezzClips Clipstores and get 20% revshare for life
                                      YooGirls.com - Sell your non-nude content - Promote Yoogirls Clipstores and get 20% revshare for life
                                      [email protected] • ICQ #464114379

                                        Comment

                                        • mineistaken
                                          See signature :)
                                          • Apr 2007
                                          • 29656
                                          #11
                                          Originally posted by EddyTheDog
                                          That's what I was going to say...

                                          Also, as far as I know everyone in the EU has to collect VAT - You don't have to register a VAT number until your turnover is over a certain limit
                                          you do not have to collect VAt untill you are VAt registered. So if you are very small company you do not collect VAT (unless you choose to). It depends on your business, sometimes its better to register, sometimes not. Depend on what you sell - goods or services and who are your customers, VAT registered or private.

                                            Comment

                                            • EddyTheDog
                                              Just Doing My Own Thing
                                              • Jan 2011
                                              • 25433
                                              #12
                                              Originally posted by mineistaken
                                              you do not have to collect VAt untill you are VAt registered. So if you are very small company you do not collect VAT (unless you choose to). It depends on your business, sometimes its better to register, sometimes not. Depend on what you sell - goods or services and who are your customers, VAT registered or private.
                                              You are correct - I had a look and you need to register if your turnover is over 79K.....

                                              I thought you had to charge VAT anyway to stop fraud.....

                                                Comment

                                                • v4 media
                                                  Confirmed User
                                                  • Feb 2005
                                                  • 2934
                                                  #13
                                                  godaddy charges vat aswell on eu purchases nope?

                                                  Originally posted by EddyTheDog
                                                  You are correct - I had a look and you need to register if your turnover is over 79K.....

                                                  I thought you had to charge VAT anyway to stop fraud.....
                                                  You can register if its less, if you think it´s in your benefit to do so though.

                                                    Comment

                                                    • Phoenix
                                                      BACON BACON BACON
                                                      • Nov 2002
                                                      • 35475
                                                      #14
                                                      This is coming everywhere soon. I think it is right also, you should charge tax for whatever location the customer is from. then remit that tax to that government. Pain in the ass? Maybe, but it can mostly be automated except for the actual paying them part.
                                                      Telegram PhoenixBrad
                                                      https://quantads.io

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