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VAT on Web Hosting from outside Europe?

Is VAT applicable on hosting from outside Europe



3:35 pm on Jun 29, 2006 (gmt 0)

10+ Year Member

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?


4:00 pm on Jun 29, 2006 (gmt 0)

10+ Year Member

Hi Gibisan,

In brief: they don't have to charge you VAT.

(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.

HTH, a.


4:04 pm on Jun 29, 2006 (gmt 0)

10+ Year Member

thanks for the prompt reply andye. I'll take your advice and drop an email to HMRC.
I did not think that they should be charging (from an Australian GST to outside Australia perspective anyway)


5:18 pm on Jun 29, 2006 (gmt 0)

10+ Year Member

No probs Gibisan - electronic services are a special case under UK VAT law, so make sure they know that you're talking about web hosting. Physical goods are treated differently.

All the best, a.