There were big changes to the European Union ‘tax regime’ on 1st January 2010. As such, services we sell for “Business Use” are exempt from Value Added Tax (VAT) in 26 EU countries. We are advising all EU businesses to ensure that they are not unnecessarily paying 17.5% VAT.

Tax exemption exists for business customers in the following countries: 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.

UK businesses: There is no tax exemption for UK businesses because Spiral Hosting is registered for tax in Northern Ireland. We cannot VAT-exempt invoices for UK businesses and you will have to reclaim any VAT from HMRC.

How businesses can claim tax exemption

- Firstly, VAT registered businesses:

If you are a business with an EU VAT registration number, please email your VAT number to billing@spiralhosting.com and we will change your account so that invoices are VAT-Exempt. You can also enter your VAT number through our Client Area by going to the My Details page: https://secure.spiralhosting.com/clientarea.php?action=details .

Please note that under EU VAT Directive 2008/8/EC, we will validate every VAT Registration Number and detail your VAT-exempt business expenditure on our EC Sales List.

- Secondly, other businesses:

If you do not have a VAT Registration Number, we can still change your account so that invoices are VAT-Exempt. To make such a request, please email billing@spiralhosting.com stating: “On behalf of Business Name, I declare that we are a ‘taxable person’ under EC Directive 2006/112/EC, Article 9. I request that you do not charge us VAT on our invoices. We agree to pay any VAT that is due directly to our local tax authority in Country.”

We may ask for additional information to keep on file so that we can prove you definitely operate a business. This may include a company registration number, a certificate from your local tax authority, or copies of your business letterhead, commerical documents or commercial website.

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If you have any questions, please don’t hesitate to contact billing@spiralhosting.com or your Account Manager directly.

We have sent an email to all customers explaining that from the 1st January 2010 we have to start charging 17.5% tax on all products sold to EU residents. Here’s the details:

Dear client,

This is a notice that from 1st January 2010, Spiral Hosting Ltd will begin to charge Value Added Tax (VAT) on all products sold to customers located in the European Union. This notice explains how it will affect you and how you can claim an exception if you have an EU VAT Registration Number or operate as a ‘relevant business person’.

If you are not located in the European Union, please ignore this email as it does not affect you.

Who has to pay VAT?

All customers who reside in the European Union (EU27) must pay VAT. Spiral Hosting Ltd is a registered company in Northern Ireland and will therefore charge the standard UK VAT rate, currently 17.5%.

The EU27 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, Sweden and the United Kingdom.

If you are located in any other country, we will not charge you any VAT.

Exemption for Businesses

- Firstly, VAT Registered Businesses:

If you are a business with an EU VAT registration number, please email your VAT number to billing@spiralhosting.com and we will change your account so that invoices are VAT-Exempt. You can also enter your VAT number through our Client Area by going to the My Details page: https://secure.spiralhosting.com/clientarea.php?action=details . If you do this, no VAT will appear on your invoices and you will be responsible for paying any VAT yourself directly to your local tax authorities.

Please note:
1) Under EU VAT Directive 2008/8/EC, we will validate every VAT Registration Number and detail your VAT-exempt business expenditure on our EC Sales List.
2) There is an exception for UK businesses. We cannot VAT-exempt invoices for UK businesses and you will have to reclaim any VAT from HMRC.

- Secondly, other businesses:

If you do not have a VAT Registration Number, we can still change your account so that invoices are VAT-Exempt providing you take responsibility for paying any VAT to your local tax authority. To make such a request, please email billing@spiralhosting.com stating: “On behalf of Business Name, I declare that we are a ‘taxable person’ under EC Directive 2006/112/EC, Article 9. I request that you do not charge us VAT on our invoices. We agree to pay any VAT directly to our local tax authority in Country.”

We may ask for additional information to keep on file so that we can prove you definitely operate a business. This may include a company registration number, a certificate from your local tax authority, or copies of your business letterhead, commerical documents or commercial website.

Please note:
1) We will detail your VAT-exempt business expenditure to our local tax authority if they ask why we have not charged you VAT.
2) There is an exception for UK businesses. We cannot VAT-exempt invoices for UK businesses and you will have to reclaim any VAT from HMRC.

When will I start seeing VAT on invoices?

Invoices created on/before 31st December 2009 will not have VAT, and invoices created on/after 1st January 2010 will have VAT. This is regardless of the date that the invoice is actually paid.

Can I avoid paying VAT?

Yes! You can renew your web services with us before we start to charge VAT. Many services can be renewed up to 10 years in advance. Please speak with our Sales Team.

If you have any questions, please don’t hesitate to contact billing@spiralhosting.com or your Account Manager directly.

Best regards,

The Spiral Hosting Team