EU Based Customers May Be Charged VAT Soon


#1

Linode has added a new field in the “Contact Info” form under “Accounts”. This may mean some changes. A new VAT Number field has been found on the contact info/billing form in the Linode Manager. This hints that Linode may soon be charging customers VAT. The help text next to the field says, “EU VAT Registration Number, if applicable.”, hinting that this may only apply to European Union (EU) customers.


This is a companion discussion topic for the original entry at http://linodians.com/blog/linode-may-charge-vat-soon/

#2

We’re a EU-based company and got a banner in the manager that this change was upcoming. We’re a company with a VAT number so no change for us. I wonder what prompted this change, some change in EU regulations? Or does Linode have a European subsidiary?


#3

That’s a good question. Personally I’m not aware of Linode having a European subsidiary. Back when I worked there, they didn’t. Since then, they haven’t announced anything.

Since they launched the Frankfurt DC, they must be doing more business in the EU than ever before. Perhaps they caught someone’s attention who wants their cut. I don’t know.


#4

It doesn’t matter where the company is located. If you sell electronically supplied services to EU/EEA customers, VAT is due to the country where the customer resides.

From 1 January 2015, telecommunications, broadcasting and electronic services are always taxed in the country where the customer belongs* – regardless of whether the customer is a business or consumer – and regardless of whether the supplier is based in the EU or outside


#5

Thanks for the information.