Vistaprint and VAT for website

madbadrob

Am I correct in thinking that VAT can only be charged to the value of 20% for a website hosted by Vistaprint? I know they are not a UK company but by selling in the UK and having sales above the threshold they should be bound by UK VAT laws.

Rob

DevCoder

They are bound by whichever laws they fall under jurisdiction as a company.

Maybe explain your issue a bit more so we can give advice?

wealdroam

madbadrob wrote: »

Am I correct in thinking that VAT can only be charged to the value of 20% for a website hosted by Vistaprint? I know they are not a UK company but by selling in the UK and having sales above the threshold they should be bound by UK VAT laws.

Rob

No, it is nowhere near as simple as that.

Vistaprint have a table of vat rates charged.

From that table I guess you are quering the vat rate charged for Electronic Products.

Electronic Products are probably classed as services, and it is the vat rate where the service is provided that is used.

Thus the Netherlands 21% rate is used as apparently the 'service' is provided from there.

This HMRC doc may help:

http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm

...on the other hand it may not.

keyser666

You would get far cheaper from other hosting providers

madbadrob

Thanks for your reply and Wealdoroam when you click through the relevant links on the HMRC site you get to http://webarchive.nationalarchives.gov.uk/20110202144320/http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_CL_000922

Which states what I believed to be the law for non EU companies based in the EU. Vistaprint people told me themselves they are a US company based in the Netherlands. Therefore under the rules set out in the EU they have to charge the applicable amunt of VAt for the country the goods are being supplied to. They then pay to the tax office of the country they are registered in who then pay the monies to the UK tax man. The more I read the more complicated it gets lol.

Keyser yes I know and I am at present looking for a host who will give me at least the equivalent that VP have. I doubt ill get the unlimited bandwidth I enjoy with VP but as I will never have massive usage that is not a problem.

I didnt give full details of the situation as some of it is commercially sensitive.

Thx for all the help its appreciated

Rob

shaun_from_Africa

madbadrob,
The link that you gave in your last post:
http://webarchive.nationalarchives.gov.uk/20110202144320/http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_CL_000922
doesn't apply to Vistaprint.
The reason for this is that the information supplied is regarding non businesses that are not established in the EU.
Even though Vistaprint is a US company, they have a registered office in the Netherlands so they have a business presence there, hence they are established in the EU.

Because of this, the law is as wealdroam states and they are required by law to charge VAT at the applicable rate in the country in which the company is established.
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/

VAT on services is paid at the place where the service has been supplied. This will most often, but not always, be where the service supplier is established. The trader will in
those cases account for VAT on his services in the Member State where he is established, applying the VAT rate of that country.
..
The supply of services between businesses (B2B services) is in principle taxed at the customer's place of establishment, while services supplied to private individuals (B2C services) are taxed at the supplier's place of establishment.

wealdroam

madbadrob wrote: »

Therefore under the rules set out in the EU they have to charge the applicable amunt of VAt for the country the goods are being supplied to.

I thought we were talking about services... not goods?

VAT is charge at the rate where the service is provided.

The service is provided in The Netherlands.