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  1. #1

    VAT refund for non-EU residents

    If I, a resident of the USA, buy a dedicated server in the EU from a company that requires me to pay VAT, am I eligible for a VAT refund? If so, how do I go about this?

    Thanks

  2. #2
    Join Date
    Jan 2002
    Location
    Scotland, UK
    Posts
    2,687
    Certainly if you are buying the server from a UK-based company then they should not be charging you VAT if you are outside the EU so there is no reason to claim a rebate. The rebate only comes into account if you are an EU based business who has been charged VAT.
    Chris Adams - CEO - Rochen Ltd. - chris (at) rochen (dot) com

    Now offering both US & UK premium business hosting, reseller hosting and managed virtualized services.
    rochen.com | rochen.co.uk | blog.rochen.com | forums.rochen.com | Twitter: @rochenhost

  3. #3
    Join Date
    Feb 2006
    Posts
    466
    No you are not ! The EU company does not have a right to charge you VAT on webhosting. You do not get it back from the government but you have to explain to that company that they do not have to/are not allowed to charge you as a US customer VAT... I'm 100% sure about that.

  4. #4
    The host I'm looking at is NetDirekt, based in Germany. Their advertised prices include VAT. So their 3.6GHz server is advertised as EUR 110 but it's actually EUR 94.83 + VAT. It looks like this on the invoice:

    Sum: 94,83 €
    VAT (16%): 15,17 €
    Monthly fee: 110,00 €

    I'm e-mailing them to see if they will remove the VAT from my order.

  5. #5
    Join Date
    Feb 2006
    Posts
    466
    Send them this message:

    Gemäß BMF Rundschreiben IV D 1 -S 7117 f -15/03 ist Webhosting "eine auf elektronischem Wege erbrachte sonstige Leistung" im Sinne des §3a Abs. IV Nr. 14 UStG (auch wenn sie zusammen mit bspw. Telekommunikationsdienstleistungen als Internet Service Paket verkauft wird). Sie gilt gemäß §3a Abs. 3 UStG umsatzsteuerlich als am Wohnsitz des Empfängers erbracht, wenn dieser außerhalb der EU wohnt. Die Folge hiervon ist, dass die Leistung nicht steuerbar ist (Vorsteuerabzug bleibt erhalten). Auf den Serverstandort oder den zivilrechtlichen Leistungsort kommt es dabei nicht an. Beim Verkauf an US Kunden darf daher keine MwSt berechnet werden. Alle Angaben ohne Gewähr. Konsultieren Sie Ihren Steuerberater (die Finanzämter zu befragen bringt in der Regel nichts, da diese sich mit der Thematik erfahrungsgemäß nicht auskennen). Das Rundschreiben finden Sie auf:
    http://www.bielefeld.ihk.de/fileadmi...rnetsteuer.pdf
    Last edited by glace; 11-05-2006 at 09:08 PM.

  6. #6
    Join Date
    Nov 2005
    Location
    Czech Republic / Thailand
    Posts
    191
    Quote Originally Posted by glace
    No you are not ! The EU company does not have a right to charge you VAT on webhosting. You do not get it back from the government but you have to explain to that company that they do not have to/are not allowed to charge you as a US customer VAT... I'm 100% sure about that.
    Yes, you are correct

    Cheers,
    Beruska
    Flash Live & VoD Streaming solutions 4 All.
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  7. #7
    Join Date
    May 2004
    Location
    Singapore
    Posts
    370
    Some time ago, we were on shopping for a UK server. An UK host that we were interested in told us they must charge VAT and that we could claim it back from our local tax office. Well, you guess it, we went with another host who doesn't charge VAT instead.

    To businesses in the EU: DO NOT tell your clients (from outside the EU) to pay VAT and claim from their tax office. You WILL drive them away! In my opinion, if an EU business is not ready to remove VAT for non-EU residents, they are NOT READY for international sales.

  8. #8
    Join Date
    Feb 2006
    Posts
    466
    EU companies are not even allowed to charge their US customers VAT for webhosting services. However, they could say "our prices include VAT for EU customers" and charge everyone the same price. Then they send you an invoice that does not include VAT but they could still charge you the full amount.

  9. #9
    Join Date
    Jan 2006
    Location
    Uk/Australia
    Posts
    11
    Hi All

    I am hosting with a certain UK company and our business is based in Oz. I asked if I could be billed ex VAT and they wouldn't do it. I've been paying VAT on a product that sounds like I shouldn't have been paying VAT on for 2 years now

    My new servers go live with another company today who aren't going to charge me VAT

    Matt

  10. #10
    Join Date
    Feb 2006
    Posts
    466
    It's a shame how many EU businesses are not informed about the VAT laws... Even Google Ireland didn't know how to deal with it for quite some time (then finally paid back all the VAT they had charged to some customers) and you should think that they can afford accountants.

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