On Sat, 16 Sep 2000 [EMAIL PROTECTED] wrote:
> Discuss List:
>
> I seem to be the only one surprised or concerned about the
> taxes (17.5%) on the .uk domain names. My understanding
> (and I'm sure I'll be chastised if I'm wrong) :) is that anyone
> selling a .uk domain name will be taxed on the sale (the cost of
> which is passed on to the buyer) and the new owner of the
> name is taxed on everything he sells on his website.
Not necessarily. I assume you are outside the EU? Then you should be able
to get the domains without paying VAT. And sell them to anyone outside the
EU without levying VAT as well.
As to selling to someone inside the EU, yes, well, this is rather
confusing to me. It seems the EU thinks you should collect VAT :-) But
anyway, how are they going to determine (not to mention enforce) how much
VAT you should have levied? This is impossible to monitor. What will
happen is that a company inside the EU will have to pay the VAT themselves
to the tax office for all goods (including a domain bought from you) that
are acquired outside the EU. This sounds harsh, it is not, for this VAT
can then again be deducted from the VAT that has to be levied on the
company's own sales. It is mostly an administrative burden. This has been
the case for years and years for all (not just internet) sales in the EU.
It is much more trouble for those resellers that are *in* the EU...
If you do not believe me, register a domain through either joker.com or
gandi.net. You will notice that, if you are outside the EU you do not pay
VAT.
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Marc Schneiders (more in the header)
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