Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : VAT?

[M Bacon]

Say if I live in the U.S.(Which I do) and I buy an offshore server. Do I have to pay VAT?

[jNive]

if you are buying from the EU then no - in short (provided the seller accounts for recent online e-commerce VAT regulations for EU sellers).

If you are buying it as an agent of another entity (a company etc) that is registered in the EU though, it's a different story!

[M Bacon]

Looks like I don't have to pay any VAT! Thanks for the information. Just Double Checking before I buy an offshore server in the near future.

[TBradley]

Because the company that you own resides in the US, you will not have to do anything extra. There can be circumstances where, if you had large amounts of servers, routers, etc. you might run into this type of problem.

[tim2718281]

Originally Posted by M Bacon

Say if I live in the U.S.(Which I do) and I buy an offshore server. Do I have to pay VAT?

Unlike US sales tax, VAT is a tax on the seller, not on the buyer.

So the buyer never pays VAT; it is always the seller who pays.

Some EU sellers may reduce their price when selling outside the EU, passing on the saving they are making because they are not required to pay VAT on sales outside the EU. However, it's possible that some sellers do not pass on that saving - they are not obliged to.

[ldcdc]

Unlike US sales tax, VAT is a tax on the seller, not on the buyer.

Actually, VAT is a tax on the buyer.

Value added tax (VAT) is similar to a sales tax. It is a tax on the estimated market value added to a product or material at each stage of its manufacture or distribution, ultimately passed on to the consumer.

http://en.wikipedia.org/wiki/Value_added_tax

However, it's possible that some sellers do not pass on that saving - they are not obliged to.

Even if one pays the VAT, in theory, one can get those money back, if you're not subject to the tax. I don't know the details on the process though. It may not be easy or feasible for small amounts.

[robbert]

There is value VAT in the USA but it is imposed on seller not buyer. So, the buyer will not have to pay the VAT, Means you are exempted from this.

Regards