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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.
Comments
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
Time to start migrating...
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
What's an AU model of a car? is it upside down?
Francisco
Yeah, they read the designs off a mirror.
Hold up...I read "users located in Australia" as "you're an Australian" not "you're a citizen of another country who selected SYD".
Change your country settings or just migrate! lol-
Idk wtf is the problem with the gov wanting to tax everything!
Ouch:
http://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=AU
They should take advice from apple.
ouch, ya'll should move to another SYD based host, I hear c38.host is awesome! Just sayin...
Reported for shilling. Just saying..
This will be applicable to all businesses ,so I do not think changing host will solve this issue !
It will be applicable to all businesses who:
It is bullshit though.
Anybody who have servers in Australia will be more worried than some small resellers who do not have a cage !!
100% agree.
75,000 dollerydoos?!
Francisco
i get more bandwidth from my ISP
I do believe Kangaroo is the correct, and direct, exchange rate here. :P
75,000 Kangaroos*
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.
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?
@randvegeta 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.
@randvegeta Vultr operates out of Equinix Sydney (in AU) only AFAIK.
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.
Is the law. Follow it and you'll be alright in life.