Bought a domain at godaddy auctions and they want me to pay VAT - GoFuckYourself.com

greg80 · 10-23-2009, 05:50 AM

I just bought a domain at godaddy auctions for $1250 and they want me to pay $250 VAT. This is crazy, I am EU citizen buying from US company (owner of domain) through another US company (godaddy).

WTF should I pay VAT for? I bought a lot of times from Sedo (German company!) and never paid VAT on domains.

seeandsee · 10-23-2009, 06:02 AM

they want your $

greg80 · 10-23-2009, 06:04 AM

Quote:

Originally Posted by seeandsee

they want your $

This is their company info as published on auctions.godaddy.com

14455 N. Hayden Rd.
Suite 219
Scottsdale, AZ 85260

they are an US company charging a tax that does not exist in US to their users.

woj · 10-23-2009, 07:48 AM

Get someone from the US to buy it for you, and save yourself $250...

Davy · 10-23-2009, 07:54 AM

Godaddy will try to squeeze every last money drop out of you wherever they can. Didn't you already notice during the domain registration process?

baddog · 10-23-2009, 09:24 AM

Quote:

Originally Posted by greg80

This is their company info as published on auctions.godaddy.com

14455 N. Hayden Rd.
Suite 219
Scottsdale, AZ 85260

they are an US company charging a tax that does not exist in US to their users.

Not unusual to charge a sales tax to people making online purchases. Isn't VAT your sales tax?

SimonScans · 10-23-2009, 09:41 AM

It's all about where you the customer are located. If you are in the EU then you should be charged VAT regardless of where the company is.

Non EU companies are meant to register in the EU for VAT if they do business there, clearly lots don't but that's another issue. Certainly more and more big ones are.

Companies in the EU have to register in the country they reside in, but non EU companies also have to register in the EU to pay VAT charged to EU customers - the one benefit they have is that they get to in effect choose which country they register in so tend to pick the lower rated ones, but in general VAT is between 15 and 25%.

So much for no taxation without representation.

Every day the internet becomes more and more part of the real world.

Please don't blame me for any of this, I also have never had the chance to vote on anything related to EU law.

closer · 10-23-2009, 10:07 AM

SimonScans is completely correct on this.

GoDaddy has a EU VAT number which you will see on your invoice (starts with EUxxxx)

You don't have to pay VAT at GoDaddy auctions if you provide a valid European VAT number during checkout, choose option Business.

MaDalton · 10-23-2009, 10:21 AM

Quote:

Originally Posted by closer

SimonScans is completely correct on this.

GoDaddy has a EU VAT number which you will see on your invoice (starts with EUxxxx)

You don't have to pay VAT at GoDaddy auctions if you provide a valid European VAT number during checkout, choose option Business.

yes, exactly. provide a Vat ID and the Tax goes away. GoDaddy just does what is correct unlike other companies who owe 50 million USD in unpaid VAT now.

and if you have no Vat ID you will get the $250 back when you claim taxes for your business.

the only problem is when you so far avoided paying tax for your business - but this would be clearly your problem and not a Godaddy problem

greg80 · 10-23-2009, 12:47 PM

why don't I need to pay VAT when I buy a domain at SEDO auction? They are European company!

Broda · 10-23-2009, 12:49 PM

Quote:

Originally Posted by MaDalton

...
and if you have no Vat ID you will get the $250 back when you claim taxes for your business.
...

Well, he won't get them BACK, but he can claim the $250 as an expense so he gets a taxdeduction for it. Not quite the same

After Shock Media · 10-23-2009, 12:51 PM

Quote:

Originally Posted by greg80

why don't I need to pay VAT when I buy a domain at SEDO auction? They are European company!

Read the thread.
Apparently they are not yet fully playing by the rules or they picked a different Euro country as someone mentioned above for vat purposes.

greg80 · 10-23-2009, 01:01 PM

so us porn companies are supposed to charge vat on european sales?

buyandsell · 10-23-2009, 01:02 PM

hey when I was in UK they wanted me to pay VAT I changed my address on the whois and account to US and currency to $ and got round it

greg80 · 10-23-2009, 01:10 PM

so you are saying I should change my godaddy account address to some address I don't live in and risk my 2 dedicated servers and 70 domains I have there? I would rather not. But one thing is for sure, they are the only US company to ever charge me VAT so I will not pay it.

TheDA · 10-23-2009, 01:13 PM

Quote:

Originally Posted by greg80

so us porn companies are supposed to charge vat on european sales?

Yes. Bush signed up to it.

The European Union were supposed to be going after a lot of companies this year but I haven't really heard of individual cases yet.

There was a story on here about AFF or the parent company or someone connected with AFF being hit with it. Can't remember the details.

Due · 10-23-2009, 01:36 PM

Quote:

Originally Posted by greg80

so us porn companies are supposed to charge vat on european sales?

Correct, it's a consumer tax, it's to be charged from consumers and not from companies, that is why a US company is required to charge it and pay it on behalf of the consumer if they wish to do business in the European union. Avoiding to collect and pay it just means that they automatically assume the VAT is included in the sales price and you are trying to steal the money from the government and that it was collected from the customer

The good news is that with our PHONE and SMS billing system the VAT is automatically CHARGED and PAID on your behalf so you do not need to worry about this

greg80 · 10-23-2009, 01:55 PM

well I'm not throwing $250 down the drain. I have written again to godaddy to see what they can do. If they can't do anything I'll try to move this to my friends account. He lives outside EU. But I can already see this will be a huge problem with godaddy.

baddog · 10-23-2009, 02:14 PM

Quote:

Originally Posted by greg80

But one thing is for sure, they are the only US company to ever charge me VAT so I will not pay it.

MrHits · 10-23-2009, 02:23 PM

WTF why is tax so much, isn't that like 20%?

BlackCrayon · 10-23-2009, 02:25 PM

Quote:

Originally Posted by greg80

well I'm not throwing $250 down the drain. I have written again to godaddy to see what they can do. If they can't do anything I'll try to move this to my friends account. He lives outside EU. But I can already see this will be a huge problem with godaddy.

I doubt that will work unless you pay for the domain with your friends credit card.

greg80 · 10-23-2009, 02:33 PM

Quote:

Originally Posted by MrHits

WTF why is tax so much, isn't that like 20%?

welcome to europe

u-Bob · 10-23-2009, 03:08 PM

the question is: are you paying for goods or a service...?

greg80 · 10-23-2009, 03:47 PM

Quote:

Originally Posted by u-Bob

the question is: are you paying for goods or a service...?

I am paying for an aftermarket domain. I have bought plenty at sedo, from private sellers through escrow.com, PLENTY through snapnames.com and have never been charged VAT. Why at godaddy than?

PornMD · 10-23-2009, 04:30 PM

Quote:

Originally Posted by greg80

I am paying for an aftermarket domain. I have bought plenty at sedo, from private sellers through escrow.com, PLENTY through snapnames.com and have never been charged VAT. Why at godaddy than?

They're probably supposed to per some of the earlier posts in this thread because you're in the EU, assuming VAT is assessed for purchase of domains (which CA sales tax for instance doesn't seem to be).

Then again, they are also the company with a subscription based paid parking service, so who knows...they love to glean as much money off of n00bs as they can get.

MaDalton · 10-25-2009, 09:27 AM

Quote:

Originally Posted by Broda

Well, he won't get them BACK, but he can claim the $250 as an expense so he gets a taxdeduction for it. Not quite the same

thats not correct, VAT is a consumer tax and does not affect business to business transactions. as a business i have to charge VAT to consumers which i have to transfer to the government. and if i as a business have to pay VAT somewhere i can claim this money from the government. we do this every 3 months.

Cyber Fucker · 10-25-2009, 10:03 AM

Quote:

Originally Posted by seeandsee

they want your $

v4 media · 10-25-2009, 12:46 PM

If you're in the EU and not registered for sales tax, then what are you registered as?
If you have a business it's a 100% tax write back against income.

10-23-2009, 05:50 AM	#1
greg80 Confirmed User Industry Role: Join Date: May 2007 Posts: 1,644	Bought a domain at godaddy auctions and they want me to pay VAT I just bought a domain at godaddy auctions for $1250 and they want me to pay $250 VAT. This is crazy, I am EU citizen buying from US company (owner of domain) through another US company (godaddy). WTF should I pay VAT for? I bought a lot of times from Sedo (German company!) and never paid VAT on domains. __________________ Say no to GoDaddy and high renewal prices! Go with NameSilo - FREE private whois for life, $8.99 regstrations and renewals. Free redirects, emails, great control panel and more! NameSilo rocks!

10-23-2009, 06:02 AM	#2
seeandsee Check SIG! Industry Role: Join Date: Mar 2006 Location: Europe (Skype: gojkoas) Posts: 50,945	they want your $ __________________ BUY MY SIG - 50$/Year Contact here

10-23-2009, 07:48 AM	#4
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	Get someone from the US to buy it for you, and save yourself $250... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

10-23-2009, 07:54 AM	#5
Davy Confirmed User Industry Role: Join Date: Apr 2006 Location: Germany Posts: 4,323	Godaddy will try to squeeze every last money drop out of you wherever they can. Didn't you already notice during the domain registration process? __________________ --- ICQ 14-76-98 <-- I don't use this at all

10-23-2009, 10:07 AM	#8
closer Confirmed User Industry Role: Join Date: Sep 2005 Location: ICQ :: 34739932 :: Les Pays-Bas Posts: 1,707	SimonScans is completely correct on this. GoDaddy has a EU VAT number which you will see on your invoice (starts with EUxxxx) You don't have to pay VAT at GoDaddy auctions if you provide a valid European VAT number during checkout, choose option Business. __________________ HOT DOMAIN NAMES FOR SALE: EUROPEAN: MACHO.FR ⌘ KINKY.ES ⌘ SEXTOONS.CO.UK ⌘ DOT COMS: DJSEX.COM ⌘ FAQBOX.COM ⌘ WEBCAMSTV.COM ⌘ SEXTWEET.COM ⌘ PORNVOUCHER.COM ⌘ GAYBF.COM \| GAYBFF.COM ⌘ GAYSEXDATE.COM \| GAYSEXDATING.COM

10-23-2009, 09:41 AM	#7
SimonScans Confirmed User Industry Role: Join Date: Jun 2006 Posts: 342	It's all about where you the customer are located. If you are in the EU then you should be charged VAT regardless of where the company is. Non EU companies are meant to register in the EU for VAT if they do business there, clearly lots don't but that's another issue. Certainly more and more big ones are. Companies in the EU have to register in the country they reside in, but non EU companies also have to register in the EU to pay VAT charged to EU customers - the one benefit they have is that they get to in effect choose which country they register in so tend to pick the lower rated ones, but in general VAT is between 15 and 25%. So much for no taxation without representation. Every day the internet becomes more and more part of the real world. Please don't blame me for any of this, I also have never had the chance to vote on anything related to EU law.

10-23-2009, 12:47 PM	#10
greg80 Confirmed User Industry Role: Join Date: May 2007 Posts: 1,644	why don't I need to pay VAT when I buy a domain at SEDO auction? They are European company! __________________ Say no to GoDaddy and high renewal prices! Go with NameSilo - FREE private whois for life, $8.99 regstrations and renewals. Free redirects, emails, great control panel and more! NameSilo rocks!

10-23-2009, 01:01 PM	#13
greg80 Confirmed User Industry Role: Join Date: May 2007 Posts: 1,644	so us porn companies are supposed to charge vat on european sales? __________________ Say no to GoDaddy and high renewal prices! Go with NameSilo - FREE private whois for life, $8.99 regstrations and renewals. Free redirects, emails, great control panel and more! NameSilo rocks!

10-23-2009, 01:02 PM	#14
buyandsell Confirmed User Industry Role: Join Date: May 2008 Location: USA Posts: 692	hey when I was in UK they wanted me to pay VAT I changed my address on the whois and account to US and currency to $ and got round it

10-23-2009, 01:10 PM	#15
greg80 Confirmed User Industry Role: Join Date: May 2007 Posts: 1,644	so you are saying I should change my godaddy account address to some address I don't live in and risk my 2 dedicated servers and 70 domains I have there? I would rather not. But one thing is for sure, they are the only US company to ever charge me VAT so I will not pay it. __________________ Say no to GoDaddy and high renewal prices! Go with NameSilo - FREE private whois for life, $8.99 regstrations and renewals. Free redirects, emails, great control panel and more! NameSilo rocks!

10-23-2009, 01:55 PM	#18
greg80 Confirmed User Industry Role: Join Date: May 2007 Posts: 1,644	well I'm not throwing $250 down the drain. I have written again to godaddy to see what they can do. If they can't do anything I'll try to move this to my friends account. He lives outside EU. But I can already see this will be a huge problem with godaddy. __________________ Say no to GoDaddy and high renewal prices! Go with NameSilo - FREE private whois for life, $8.99 regstrations and renewals. Free redirects, emails, great control panel and more! NameSilo rocks!

10-23-2009, 02:23 PM	#20
MrHits Confirmed User Join Date: Apr 2003 Location: Boulder, CO Posts: 236	WTF why is tax so much, isn't that like 20%? __________________

10-23-2009, 03:08 PM	#23
u-Bob there's no $$$ in porn Industry Role: Join Date: Jul 2005 Location: icq: 195./568.-230 (btw: not getting offline msgs) Posts: 33,063	the question is: are you paying for goods or a service...?

10-25-2009, 12:46 PM	#28
v4 media Confirmed User Industry Role: Join Date: Feb 2005 Location: Spain Posts: 2,934	If you're in the EU and not registered for sales tax, then what are you registered as? If you have a business it's a 100% tax write back against income.