VAT on US Services

[aspdaddy]

Does a non VAT regd ltd company that buys hosting from the US pay VAT ?

DO they get billed in us$ or £?

Thanks

[topr8]

well you need to make sure you are billed from america.

eg. i am in a similar situation, i pay special scheme vat at a flat rate of turnover with no claiming back of vat.
when i was negotiating with rackspace uk, they told me it was impossible and that i would have to pay vat even if the server was in the us (which is what i wanted)
however i managed to get to talk to a US rep and did the deal with rackspace usa and bingo, billed in us dollars from america and NO VAT, which is a heck of a saving, the sales rep in USA said no problem! [my accountant also ok'd it]