Prices and EU VAT

Avatar forum:pauamma 9 months, 1 week ago

"Linode will soon be collecting and remitting value added tax (VAT). In general, this applies only to customers within the European Union (EU) who have not provided us their VAT registration number." Does that mean prices will go up for EU hobbyists and others who don't have a VAT registration, and if so by how much? Or will all-taxes-included prices remain as given in https://www.linode.com/pricing ? (If that's relevant to my question, my Linode is hosted in a US datacenter.)

13 Replies

@donjoe:

@dubidubno:

Linode has data centres in Frankfurt and London.
So what are you saying? That if I just have my servers migrated to a US datacenter, I'm off the hook? I'm pretty sure Linode hasn't built their own physical datacenters in Frankfurt and London, but instead leases capacity from locally operating entities. And also I'm pretty sure Linode doesn't have EU based subsidiaries, so what would be the worst thing that could happen if Linode just gave the EU the bird?

The EU countries can leverage the fact that Linode has a presence in the EU to force them to charge VAT.

@dwfreed:

This applies to all companies that do business with EU residents. Others that don't collect and remit VAT are evading (knowingly or not) EU laws that have apparently existed since 2003, and risk lots of trouble from EU member countries.

I wonder what happens if Linode, as an US based company, just says "fuck it", and refuses to collect EU taxes? I mean, how will EU enforce it's tax laws on US soil? I do understand import tolls on physical goods, which are easily enforceable by the receiving territory, but what do they think they can do if Linode just refuses to collect EU taxes? The only thing that comes to mind is that they somehow build an EU wide firewall and start blocking all Linode traffic or something.

And yeah, I'm an EU based Linode customer, and this really sucks. This will mean an 1/4 of increase in my monthly VPS bill.

@donjoe:

I wonder what happens if Linode, as an US based company, just says "fuck it", and refuses to collect EU taxes? I mean, how will EU enforce it's tax laws on US soil? I do understand import tolls on physical goods, which are easily enforceable by the receiving territory, but what do they think they can do if Linode just refuses to collect EU taxes? The only thing that comes to mind is that they somehow build an EU wide firewall and start blocking all Linode traffic or something.

Linode has data centres in Frankfurt and London.

@dubidubno:

@donjoe:

I wonder what happens if Linode, as an US based company, just says "fuck it", and refuses to collect EU taxes? I mean, how will EU enforce it's tax laws on US soil? I do understand import tolls on physical goods, which are easily enforceable by the receiving territory, but what do they think they can do if Linode just refuses to collect EU taxes? The only thing that comes to mind is that they somehow build an EU wide firewall and start blocking all Linode traffic or something.

Linode has data centres in Frankfurt and London.
So what are you saying? That if I just have my servers migrated to a US datacenter, I'm off the hook? I'm pretty sure Linode hasn't built their own physical datacenters in Frankfurt and London, but instead leases capacity from locally operating entities. And also I'm pretty sure Linode doesn't have EU based subsidiaries, so what would be the worst thing that could happen if Linode just gave the EU the bird?

Personally I would't mind having my server located in the US if that'd save me the 24% VAT.

Also, I apologize if this comes off offensive to someone. I really don't want to start a debate on the importance / unimportance of taxes or anything of that sort. I'm just pissed and need to vent (really, I am sorry).

Hey there! To clarify, this is something that will be applied to the accounts of individuals who indicate they live in a European country that requires VAT. If the account creates a Linode in a US datacenter, the tax will still be applied based on the user's home country. So if the user lives in France, French tax rates would be applied, etc.

Hope this clarifies things a little!

Is anyone able to comment on this??

My apologies for not answering this sooner! Any tax will be added on to the price of your Linode, so prices will go up slightly for people in countries that charge VAT. The exact amount your monthly bill will increase by varies from country to country.

I just registered to ask the same question.

This means a price increase of between 17 to 27% depending on which EU member state someone resides in.

Unfortunately this is too much for me so I will be looking to either reduce my Linode services or leave.

Is there a date for when this is being implemented as I would like to plan around it?

Thanks.

This applies to all companies that do business with EU residents. Others that don't collect and remit VAT are evading (knowingly or not) EU laws that have apparently existed since 2003, and risk lots of trouble from EU member countries.

Can UK be omitted, 'cus brexit?

:D

tl;dr don't admit you're from Europe.

@emestee:

tl;dr don't admit you're from Europe.

Linode requires a credit card. Credit cards have billing addresses.

Billing addresses are not verified except in US, Canada and some parts of UK.

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