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news Name.com - Important changes to VAT policy

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I have just received email from Name.com:

"If you are a resident of any European Union member state, you are required to pay Value Added Tax (“VAT”) in accordance with European Union tax legislation. As such, on Sep. 1, 2015, Name.com will begin charging VAT to customers in the European Union. Because only business-to-consumer sales are taxable, businesses can get an exemption from VAT by submitting a valid and current VAT identification number to Name.com.

It is recommended that you submit your VAT identification number, if any, as soon as possible. Failure to submit a VAT identification number will result in an approximate 20% increase in all charges, including recurring billing charges."

As far as I understood they will charge me 20% of domains already purchased if I have no VAT. Am I right?
 
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No, only new ones and the ones you will renew in the future. If you pay $11 now and you renew, it will be about $13,20 next time. I assume all companies must follow that rule from September.
 
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This changed legislation regarding VAT charges for EU customers has been in power and should've been applied on sellers' end for (all?) online purchases since January 1st this year, at least to my knowledge.

Since my domains are mostly with GoDaddy and somewhat with NameCheap, I can confirm that (at least) so far new registrations, renewals and transfers have been exempt from VAT charging practice. Not sure whether that will change coming September 1st, but we are bound to find out soon (as much as I hope it all stays VAT free).

What I can confirm though is that GoDaddy does and has been charging VAT on all aftermarket purchases, expired domain purchases, DDC and GD Auctions membership (possibly hosting and other related services as well). Haven't used any of these myself, but out of curiosity I tested it by adding various domains or memberships to my cart and giving it up just before payment was confirmed. In every single case VAT was added on top of base value in percentage which must equal that of country from which user hails. Btw that was one of reasons why DDC membership didn't make much sense to me and why I went via bulk renewal route instead.

I tried to test NameCheap's system as well in the same way, attempting to simulate purchase of a random aftermarket domain, but in their case payment confirmation was to come before being able to see final billing statement, so I gave up without finding out what NC's exact practice is.

It would be interesting to know what are experiences of other EU based domainers in that regard, those using NameCheap in particular, as well as of those using other registries.

Should something indeed change across the spectrum, starting September this year, it will be interesting to see how that affects EU based domainers who are purely hobbyists, not having any form of business registered and thus not being able to subsequently deduct VAT charges.

With GD coupons becoming history and possibly extra 15-25 percent (usually closer to latter) charged on top of every single purchase, hurdles to EU based individuals just entering domaining are clearly becoming higher and harder to ignore. As old Chinese saying goes, "may you live in interesting times ...".

Apologies for hijacking this thread about Name.com and their announcement, but entire "VAT for EU" legislation and its practical applications are probably of interest to quite many NamePros members hailing from that area, so the more experiences are shared, the better.
 
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