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Vultr to slug Australian users 10% in GST (goods and services tax)
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Vultr to slug Australian users 10% in GST (goods and services tax)

Vultr users in Australia, thanks to the new budget:

Vultr.com will start collecting a Goods and Services Tax (also known as GST) for services provided after 7/1/2017 in order to comply with new Australian regulations. Beginning with August 1st 2017, your invoices will include an additional tax charge of 10% for our users located in Australia.

You can refer to GSTR 2001/7 for more information on GST. Note that the supply of digital products and services to an Australian based business by Vultr.com is not connected with Australia and not subject to GST. If you think you should be exempt from this tax, please submit a ticket to our support team along with a copy of your record of registration showing the ABN.

If you have any questions about this upcoming change, please contact our support team today.

grape

«13

Comments

  • trewqtrewq Administrator, Provider

    That's Vultr gone for me then. Businesses collecting tax for other jurisdictions is just bent.

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  • corbpiecorbpie Member
    edited May 2017

    @trewq said:
    That's Vultr gone for me then. Businesses collecting tax for other jurisdictions is just bent.

    As soon as OVH release their cloud vps range in SYD im making the switch

    grape

  • GravelyGravely Member

    Time to start migrating...

  • NubSmooNubSmoo Member

    Business really sucks as an Aussie these days, I live in Townsville, QLD, businesses shutting down daily.

  • GravelyGravely Member

    @NubSmoo said:
    Business really sucks as an Aussie these days, I live in Townsville, QLD, businesses shutting down daily.

    No room for growth in bigger towns.... Competition is just too strong

  • GamerTech24GamerTech24 Member
    edited May 2017
    • removed due to possible mis-information.
  • FranciscoFrancisco Top Provider

    What's an AU model of a car? is it upside down?

    Francisco

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  • trewqtrewq Administrator, Provider

    @Francisco said:
    What's an AU model of a car? is it upside down?

    Francisco

    Yeah, they read the designs off a mirror.

  • raindog308raindog308 Administrator

    Hold up...I read "users located in Australia" as "you're an Australian" not "you're a citizen of another country who selected SYD".

    Thanked by 1TheOnlyDK

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  • r0xzr0xz Member

    Change your country settings or just migrate! lol-
    Idk wtf is the problem with the gov wanting to tax everything!

  • raindog308raindog308 Administrator

    NubSmoo said: Business really sucks as an Aussie these days, I live in Townsville, QLD, businesses shutting down daily.

    Ouch:

    http://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=AU

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  • They should take advice from apple.

  • pbgbenpbgben Member, Provider

    ouch, ya'll should move to another SYD based host, I hear c38.host is awesome! Just sayin...

  • @pbgben said:
    ouch, ya'll should move to another SYD based host, I hear c38.host is awesome! Just sayin...

    Reported for shilling. Just saying..

  • pbgbenpbgben Member, Provider

    @ThracianDog said:

    @pbgben said:
    ouch, ya'll should move to another SYD based host, I hear c38.host is awesome! Just sayin...

    Reported for shilling. Just saying..

  • hostdarehostdare Member, Provider

    This will be applicable to all businesses ,so I do not think changing host will solve this issue !

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  • SplitIceSplitIce Member, Provider
    edited May 2017

    It will be applicable to all businesses who:

    1. Obey the letter of the law (who here charges VAT to EU residences yet is not in EU themselves?)
    2. I believe the threshold of having over $75,000 of qualifying turnover will also apply.

    It is bullshit though.

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  • hostdarehostdare Member, Provider
    edited May 2017

    Anybody who have servers in Australia will be more worried than some small resellers who do not have a cage !!

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  • trewqtrewq Administrator, Provider

    @SplitIce said:
    It is bullshit though.

    100% agree.

  • FranciscoFrancisco Top Provider

    SplitIce said: $75,000

    75,000 dollerydoos?!

    Francisco

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  • corbpiecorbpie Member

    @pbgben said:
    ouch, ya'll should move to another SYD based host, I hear c38.host is awesome! Just sayin...

    i get more bandwidth from my ISP

    grape

  • AuroraZAuroraZ Member

    @Francisco said:

    SplitIce said: $75,000

    75,000 dollerydoos?!

    Francisco

    I do believe Kangaroo is the correct, and direct, exchange rate here. :P

    Catch me over at Primary DNS. If you want to chat I am done with this cesspool.

  • GravelyGravely Member

    @Francisco said:

    SplitIce said: $75,000

    75,000 dollerydoos?!

    Francisco

    75,000 Kangaroos*

  • randvegetarandvegeta Member, Provider

    SplitIce said: It will be applicable to all businesses who:

    Obey the letter of the law (who here charges VAT to EU residences yet is not in EU themselves?)

    I believe the threshold of having over $75,000 of qualifying turnover will also apply.
    It is bullshit though.

    Bullshit indeed. Though I agree that governments have the right to impose a tax on goods and services consumed within their jurisdiction, I do not see how they have a right to force overseas entities to collect it for them.

    My company (one of them) is based in Hong Kong. A good portion of our business comes from the EU (20-30%?). In theory, we are supposed to collect VAT on behalf of the EU and hand that over to their respective governments. But as a non-EU entity, I do not recognise their authority, and there are no laws in HK that can compel me to comply. And I do not see this as being in violation of the law any more than I don't see the consumption of alcohol in HK or Europe a crime, just because it is a crime in some Arab states. EU/US law != global law.

    If governments want to impose sales taxes on non-tangible services provided overseas, have the citizens be legally required to make a declaration and pay their taxes just as they do in their tax returns when declaring income. Ridiculous.

  • randvegetarandvegeta Member, Provider

    With that in mind, given this is actually about Vultr, didn't it actually start out as a Aussie company and would be subject to collecting the GST any way?

  • SplitIceSplitIce Member, Provider

    @randvegeta Choopa an Australian company?

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  • randvegetarandvegeta Member, Provider

    SplitIce said: Choopa an Australian company?

    No. But Vultr wasn't always Choopa was it? Even so, Vultr operates directly inside Australia. They have their own DC their, so they are actually still operating under Aussie jurisdiction.

  • SplitIceSplitIce Member, Provider
    edited May 2017

    @randvegeta Vultr operates out of Equinix Sydney (in AU) only AFAIK.

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  • ClouviderClouvider Member, Provider

    @trewq said:
    That's Vultr gone for me then. Businesses collecting tax for other jurisdictions is just bent.

    Like every company selling to EU registered businesses without VAT number and residents there :-)? MOSS

    Seems like there is only going to be more cases like this. Global tax approach has shifted and more systems like that will be implemented. General approach is now that the tax for eservices should be charged in the country where he user is based, not the company.

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  • HxxxHxxx Member

    Is the law. Follow it and you'll be alright in life.

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