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Hetzner is still charging 20% VAT for UK purchases?
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Hetzner is still charging 20% VAT for UK purchases?

No politics, but now that the UK has left the EU single market, I assume my understanding is correct that EU businesses no longer have to charge VAT on transactions made by UK customers?

Just to make sure they are not selling to UK customers from a UK subsidiary, I checked my most recent invoice (granted, it was December when UK was still in the single market), and the company billing me was Hetzner Online GmbH, Industriestr. 25, 91710 Gunzenhausen, Germany.

And to ascertain that they are not just making extra bucks on VAT-free customers, if you selected the US instead:

@Hetzner_OL do you plan to change this?

Comments

  • I think for the same reason that companies in the UK still collect VAT from European Union people !

  • ErisaErisa Member
    edited January 23

    A number of American businesses also charge VAT for British customers (Like me, I am a British customer), but definitely not all of them. I've always wondered what the law is surrounding these things but never checked.

  • pikepike Member

    @Erisa said:
    I've always wondered what the law is surrounding these things but never checked.

    Brexit in a nutshell.

    If OP gets his vat deducted, I (german customer) demand my vat to be deducted aswell @Clouvider.

  • quick, hide the VAT in new prices

    Thanked by 1yoursunny
  • MalinMalin Member

    Brexit in a nutshell.

    If OP gets his vat deducted, I (german customer) demand my vat to be deducted aswell @Clouvider.

    You're still a member of the European Soviets so you still need to pay tax as per the European fiscal policies.

    Some providers stopped charging VAT for UK companies and residents, but maybe Hetzner wants to keep pricing high and turn VAT into profit...

    Thanked by 1Blestastore
  • alwyzonalwyzon Member, Provider
    edited January 23

    @sundaymouse said:
    I assume my understanding is correct that EU businesses no longer have to charge VAT on transactions made by UK customers?

    You are wrong about that assumption. The UK tax authorities still require all foreign service providers to collect UK VAT. All that changed is that it got more complicated. Two forms instead of one. (One unified form for the EU - known as "MOSS" -, and a separate one towards the UK tax authorities).

    Why would your government yield a tax collected by them just because they left the EU; you didn't think your government would just give up on their major source of tax cash inflow? ;)

    @sundaymouse said:
    Just to make sure they are not selling to UK customers from a UK subsidiary, I checked my most recent invoice (granted, it was December when UK was still in the single market), and the company billing me was Hetzner Online GmbH, Industriestr. 25, 91710 Gunzenhausen, Germany.

    VAT is a consumer law, it is not related to where the company is located. As long as you are sitting inside a country that has a VAT scheme you will have to pay it. Smaller providers might just not give a damn about local laws besides their own local laws and foreign tax authorities will have a hard time collecting that money in a foreign country anyhow, but legally they all would be required to charge VAT in all countries they have clients in (except if the countries have some "small business exception").

    Hetzner charges VAT in all countries that have VAT schemes, not just EU ones: https://docs.hetzner.com/accounts-panel/accounts/payment-faq/

    Thanked by 1pike

    alwyzon - KVM Virtual Servers in NL starting at 1,80 €/month (excl. VAT)

  • ClouviderClouvider Member, Provider

    The place of supply rules stayed the same, UK incorporated current EU rules into its own laws, so they continue to apply.

    Thanked by 1pike

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  • verovero Member, Provider

    @Malin said:

    You're still a member of the European Soviets

    It is highly unethical to use such definition for the EU.

    Some providers stopped charging VAT for UK companies and residents, but maybe Hetzner wants to keep pricing high and turn VAT into profit...

    Well, Hetzner didn't leave EU, UK did. And though this move didn't impact VAT charging scheme, it made many things more difficult. UK will survive for sure, just as EU will, but as a citizen you can't expect any personal benefits from this process.

  • lpnlpn Member

    @alwyzon said:

    @sundaymouse said:
    I assume my understanding is correct that EU businesses no longer have to charge VAT on transactions made by UK customers?

    You are wrong about that assumption. The UK tax authorities still require all foreign service providers to collect UK VAT. All that changed is that it got more complicated. Two forms instead of one. (One unified form for the EU - known as "MOSS" -, and a separate one towards the UK tax authorities).

    This. EU businesses must charge UK customers VAT as per UK tax regulations. For similar reasons this may happen: https://www.bbc.com/news/business-55757931

  • There is no way for UK to enforce VAT collection from EU countries. UK can 'must' all it likes.

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