Upcoming VAT registration – Detailed Overview

UPCOMING VAT REGISTRATION – DETAILED OVERVIEW

[01/31/2008]

Attention dear customers!
As previously announced on the 17th of January 2008 in February our company will become VAT registered. The scheduled date for the VAT registration and implementation in the system is the 1st of March 2008. Of course we are obliged to inform you prior to this VAT introduction.
Below you will be able to familiarize yourself with the thorough information regarding the new VAT changes that will apply for all our clients. The most important will be the separate situations in which VAT will be charged.
All clients will be addressed as Businesses or Individuals within VAT related texts. Hence:
1. UK VAT at 17.5% is applicable to: Businesses (no VAT/VAT registered) and Individuals resident or registered in the European Union or United Kingdom.
2. Clients where VAT is applicable but WILL NOT affect the service pricing (i.e. equals to NIL): Businesses from the European Union.
3. Clients outside the scope of VAT: non-EU clients (Businesses and Individuals).

IMPORTANT: all customers listed ad VAT permissible as per the prior explanation will after the 1st of March 2008 have to pay the UK VAT tax which is 17.5% on top of all purchases made from us. That will of course be listed in your Itemized invoice for every purchase.

In order to visually make an example for the VAT application, we will use 100.00 USD as an example sum:
Individual Client from the UK (in accordance with item 1 of the ‘VAT Classification Groups’):

Amount Due: $100.00 USD
VAT 17.5%: $17.50 USD
Total: $117.50 USD

Business Client from the UK (in accordance with item 1 of the ‘VAT Classification Groups’):

Amount Due: $100.00 USD
VAT 17.5%: $17.50 USD
Total: $117.50 USD

Individual Client from an EU country, but not from the UK (in accordance with item 1 of the ‘VAT Classification Groups’):

Amount Due: $100.00 USD
VAT 17.5%: $17.50 USD
Total: $117.50 USD

Business Client from an EU country, but not from the UK (in accordance with item 2 of the ‘VAT Classification Groups’):

Amount Due: $100.00 USD
VAT 17.5%: $0.00 USD
Total: $100.00 USD
IMPORTANT: All customers for whom VAT will not be an option will remain paying the corresponding fee without paying VAT for purchasing our hosting services.
According to every payment the customer will receive a invoice via e-mail which are also available in the Web Hosting Control Panel. A new type-a invoice will be issued for all VAT including charges.

We will be introducing the VAT into our system prior the 1st of March 2008, however no VAT will be charged. The VAT amount will appear as 0.00 irregardless of the currency type for testing purposes in order to clear any flaws in the system in order to guarantee a smooth transition on the VAT registration date. As of today all purchases and invoices will have a VAT: 0.00 on them which is just for information nothing more.

As we are sure you will agree that the VAT will be introduced will minimum innovations. We strive for a flawless transition and will keep you updated as the situation unfolds. You are always welcome to contact us, if you have any suggestions or you see something amiss.