Due to spiralling web hosting costs due to ever increasing bandwidth (I'm not complaining!) I am looking at changing my current host. I want to continue to have my site hosted in the UK an have been comparing various hosts. Most quote prices non inclusive of VAT and being based in Australia I assumed that being outside the EU this would not be applicable to me. Having selected a host I have been told that I would have to pay VAT. I would like to know if I indeed have to pay VAT and if so presumably I would be able to claim this back. Anyone have any idea? Cheers
(We're talking about a UK company providing web hosting for a client outside the EU, right?)
If they choose to charge you VAT, then I don't know if you can reclaim it - but it's much simpler for you if they don't charge it to you in the first place.
There's info on this on HM Revenue & Customs website, but it's a bit dense - I suggest emailing HMRC.
Once you've got an email from them confirming that the hosting company doesn't have to charge you VAT, I can't see why they would insist on doing it - probably it's just some junior who thinks they have to charge VAT to everyone.