domains and TAX/customs fees from non EU countries

[maara]

Hello fellow domainers,

 

I have a few questions regarding VAT / CUSTOMS FEE vs domain selling. Im considering to use registrator from bahamas for reselling domains. Im located in EU. The thing is as in bahamas there is not any sort of tax or VAT how is that with customs fee and VAT ? If an customer buy domain from me as from reseller here in EU and I will get domain from NON EU based company do I have to pay some CUSTOMS fees like for importing goods and also somehow pay VAT if I get domain VAT free from BAHAMAS ? II dont know if most of youn care about tax vs domains but I dont want bto get into any troubles with financial government institutes or customs... any thoughts on this are welcome..

 

ALso is domain taken like tangible or untangible goods or is it taken as service ?

 

I cant find any serious informations on internet on this theme...

 

Dave

[WHMCS John]

WHMCS has a fully functioning Tax/VAT system: http://wiki.whmcs.com/Tax/VAT

 

Regarding your Bahamas/EU situation I recommend you take the advice of the relevant tax authority to advise what you should be charging.

[maara]

Hi John, thanks for reply. Yes I know tax/vat system is integrated. My post is more about how are domains handled for tax/vat purposes at all especially if I buy domain in foreign non EU country without tax and then resell it. If I for example buy some tangible goods from US as from non EU country I have to pay customs fees and also customs calculate VAT i have to pay for import of that goods. Now I dont know how is that with domais....

 

 

 

 

 

WHMCS has a fully functioning Tax/VAT system: http://wiki.whmcs.com/Tax/VAT

 

Regarding your Bahamas/EU situation I recommend you take the advice of the relevant tax authority to advise what you should be charging.

[maara]

I was hardly checking but domains are something very specific to actually find some informations for but looks like its from legal point taken as digital (electronic) service and as such everybody( from EU country)who actually buy and resell such service from NON EU country like US etc... have to pay VAT for it on import. I see that probably nobody here care about this and probably nobody pay incoming VAT but than its illegal business. I would like to have everything clear from legal point is here somebody I can share some informations regarding this - I mean somebody with business located in some EU country but reselling domains or services from companies located in non EU country... ?

[rider]

Hi maara,

 

Same situation as your for me.

 

I think :

 

Domains are "service assimilated" that mean you have to pay vat amount the registrar ask to you, in Bahamas VAT rate is 0%, and you have to pay here because the service is supplies here. There is not import in service, you pay vat in the place the service is supplied.

 

Domain registrar will maintain domain dns record and offer update posibillity as a continue service in Bahamas.

 

Regarding your client, never mind if you resell domains from a registrar outside or within EEC.

 

In both case you have to bill VAT to your customer from any country at your country VAT rate, because your domain is "service" assimilated and you supplies/ permanent delivery in your country you are a registered enterprise.

 

Please also that some enterprise statut as sole trader may not bill their customer if their annual sales are under a little level, this depending of your fiscal status you have with your registration