Information on VAT Charges from 4th January 2011
We have sent an email to all customers explaining that from 4th January 2011 we have to start charging 20% tax on all products sold to EU residents. Here’s the details:
Dear client,
We are emailing all customers based in the European Union to inform them that the standard UK Value Added Tax (VAT) rate will increase from 17.5% to 20% on 4th January 2011, as announced by the UK government earlier this year. Spiral Hosting Ltd is a registered company in Northern Ireland and the new UK VAT rate will therefore affect all our products.
If you are not located in the European Union, please ignore this email as it does not affect you.
When will the new VAT rate appear on invoices?
Invoices created on/before 3rd January 2011 will have VAT at 17.5%, and invoices created on/after 4th January 2011 will have VAT at 20%. This is regardless of the date that the invoice is actually paid.
Has the VAT exemption policy for EU businesses changed?
Although the VAT rate is changing, the VAT policy remains the same. All customers who reside in the UK must pay VAT without exception. Customers who reside in the other European Union (EU26) countries must also pay VAT but there are exemptions for ‘relevant business persons’. For example, we will not charge any VAT to businesses in Ireland providing they have given us their Company CRO number, Registered Business Name (RBN) number or Irish VAT number. There are similar requirements for businesses in other EU26 countries.
The EU26 includes: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France (incl. Monaco), Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
Can I avoid paying the new VAT rate?
Yes! You can renew your web services with us before the VAT increase. Many services can be renewed up to 10 years in advance. Please speak with our Sales Team regarding multi-year discounts or your Account Manager directly.
Best regards,
The Spiral Hosting Team
