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  1. #1

    Hosting Laws for Europe

    Hi Guys,

    I'm currently running a Business in Australia mainly Retailing Computer Products, Web Designs, and we also have a Web Hosting department for Hosting, VPS, Domains etc.

    We were looking in to expanding to europe, And weren't too sure about any particular Laws or Legislations that we may need to take part of to expand our business in that region, We will be starting in Romania which should offer some great speeds and services to most of the big countries in europe.

    Would we need to apply for a Business Registration of some sort for all European Countries that will be accessing our service? Do we need any Registration to operate remotely in that area at all?

    If anyone has any experience in that area or any links to articles or Information that can help me, Please let me know.

    Regards,
    Petru

  2. #2
    Join Date
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    No, you do not need to register your business in that country, unless you have a physical office
    You are probably already trading internationally so you only need to continue to follow the laws which apply in Australia (assuming that is where the business account and/or business is registered) for international sales and income
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  3. #3
    Quote Originally Posted by m8internet View Post
    No, you do not need to register your business in that country, unless you have a physical office
    You are probably already trading internationally so you only need to continue to follow the laws which apply in Australia (assuming that is where the business account and/or business is registered) for international sales and income
    Thanks for your reply,
    I had a feeling that it wouldn't matter as much as I don't have a Physical Location in Europe, And Yes we're based in Australia.

    Regards,
    Petru

  4. #4
    Join Date
    Dec 2004
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    Beware that -for electronically supplied services- the laws of the country of the customer apply, and not that of the supplier.

    In particular the EU believes that even if you are a non-EU company, you should charge European customers VAT.
    Can register for a VAT number in any EU member state for that.

    E.g.: http://www.belastingdienst.nl/wps/wc..._on_e_services

  5. #5
    Quote Originally Posted by Maxnet View Post
    Beware that -for electronically supplied services- the laws of the country of the customer apply, and not that of the supplier.

    In particular the EU believes that even if you are a non-EU company, you should charge European customers VAT.
    Can register for a VAT number in any EU member state for that.

    E.g.: http://www.belastingdienst.nl/wps/wc..._on_e_services
    Very useful information there Maxnet.
    Thanks alot!

  6. #6
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    Quote Originally Posted by Maxnet View Post
    In particular the EU believes that even if you are a non-EU company, you should charge European customers VAT.
    Can register for a VAT number in any EU member state for that
    Equally, the VAT threshold varies by country, so may be exempt anyway
    Many UK based companies use this method, with the monies being paid to other EU states which attract lower (or even zero) rates of VAT
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  7. #7
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    If you're a business outside EU, you do not need to charge VAT.
    Only if you sell over X amount a year.
    This amount is different from country to country, and might require a branch in that specific country to operate.

    In Denmark, if you're doing business and have a turnover of more than 37532USD a year, it's required that you make a branch in Denmark, charging 25% VAT for all danish customers, as well as paying taxes to the danish government.

    Please keep in mind, that most company don't follow these rules, and usually only bigger companies that get problems with it.

  8. #8
    Join Date
    Dec 2004
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    Quote Originally Posted by m8internet View Post
    Equally, the VAT threshold varies by country, so may be exempt anyway
    Many UK based companies use this method, with the monies being paid to other EU states which attract lower (or even zero) rates of VAT
    Quote Originally Posted by Hosting4Real
    If you're a business outside EU, you do not need to charge VAT.
    Only if you sell over X amount a year.
    This amount is different from country to country, and might require a branch in that specific country to operate.
    Are you guys sure any threshold applies for companies outside the EU?
    Because I think you might be confused with the thresholds that apply to companies inside the EU selling to consumers in other EU countries.


    Inside the EU: if a company in the Netherlands sells mostly to the Netherlands, but also a little bit to Belgium and Germany, it does not have to split the VAT up by country.
    It just has to pay to the Dutch government 21% VAT over everything.

    If the same company expands, and sells a million to Germany, and another million to Belgium the German and Belgian tax authority do want their cut and you have to split turnover by country, and pay at the local rate of each country.

    That's a different situation.

  9. #9
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    Quote Originally Posted by Maxnet View Post
    Are you guys sure any threshold applies for companies outside the EU?
    Certain items are, but most business transactions are not
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