Selling On Hosting - Need To Pay Taxes/VAT?

Dannycg · January 7th, 2008, 11:58 AM

Hey.
im hosted here on a reseller, and have been selling hosting to people but it was only yesterday that i heard that if your selling hosting you have to pay taxes or something ?
is this true

?

**Roxy** · January 7th, 2008, 12:09 PM

Did you read this from Jem's blog? -_-

Dannycg · January 7th, 2008, 12:11 PM

Quote:

Originally Posted by Roxy

Did you read this from Jem's blog? -_-

Haha Yeah but she knows sooooo much about things online, just wanted to check with you guys.

**Roxy** · January 7th, 2008, 12:19 PM

Well like she said, they do in the UK. So, I guess it would make sense, since she is from the UK and would know more about it. Now here in the US, it is a law, but its not enforced unless you are making like $20,000 a year. Or so a co-worker of mine says. =D

Dannycg · January 7th, 2008, 12:27 PM

ah, well she said on her blog only if your making £5,000 a year but i wanted to check if you had any rules, im nooooo-where near that i'd be lucky if i made that in 90 years haha :P

**Neil** · January 7th, 2008, 2:05 PM

If you are UK based and expenditure (things you pay for) added to incomings (what you sell) exceed 63k in a year or are expected to exceed then you should be vat registered.

You cannot charge VAT unless you are registered

You have to assess whether the service you are providing (being totally virtual) attracts VAT...

It is not easy to work out

and if you think 63K is a lot...how about...
Buy in the parts for a storage server = 3000
Build the server
Sell the storage server = 5000

Total for tax man purposes = 3000 + 5000 = 8000

so, you only need to sell 8 and you are on mandatory VAT.

**removed** · January 7th, 2008, 2:06 PM

Very few of us can give you accurate advice that should be taken seriously if you plan to have a serious hosting business. You really should contact an accountant about these regulations...

**Neil** · January 7th, 2008, 2:22 PM

Agreed Removed, there are far too many pitfalls and changes with the wind.

Dannycg · January 7th, 2008, 2:24 PM

No im not planning on a serious hosting business, its just a site to host a few friends paying at about $10 a year but it was a comment Jem had on her site that made me worried about it but im not charging VAT OR earning serious money OR earning more than i pay out to you guys,

January 7th, 2008, 11:58 AM	#1 (permalink)
Dannycg =] Comfy Contributor Joined in Nov 2007 Lives in UK. Hosted on Pass78 122 posts Gave thanks: 5 Thanked 9 times	Selling On Hosting - Need To Pay Taxes/VAT? Hey. im hosted here on a reseller, and have been selling hosting to people but it was only yesterday that i heard that if your selling hosting you have to pay taxes or something ? is this true ? __________________ Pass78

January 7th, 2008, 12:09 PM	#2 (permalink)
Roxy URB4N 5K1LLZ Super #1 Joined in Sep 2005 Lives in Orlando, FL Hosted on SH63 2,660 posts Gave thanks: 81 Thanked 128 times	Did you read this from Jem's blog? -_- __________________ Roxanne Urban Roxy -Personal Blog SH63 - the best darn shared server!

January 7th, 2008, 12:19 PM	#4 (permalink)
Roxy URB4N 5K1LLZ Super #1 Joined in Sep 2005 Lives in Orlando, FL Hosted on SH63 2,660 posts Gave thanks: 81 Thanked 128 times	Well like she said, they do in the UK. So, I guess it would make sense, since she is from the UK and would know more about it. Now here in the US, it is a law, but its not enforced unless you are making like $20,000 a year. Or so a co-worker of mine says. =D __________________ Roxanne Urban Roxy -Personal Blog SH63 - the best darn shared server!

January 7th, 2008, 12:27 PM	#5 (permalink)
Dannycg =] Comfy Contributor Joined in Nov 2007 Lives in UK. Hosted on Pass78 122 posts Gave thanks: 5 Thanked 9 times	ah, well she said on her blog only if your making £5,000 a year but i wanted to check if you had any rules, im nooooo-where near that i'd be lucky if i made that in 90 years haha :P __________________ Pass78

January 7th, 2008, 2:05 PM	#6 (permalink)
Neil Surpass Fan On a golden path... Joined in Oct 2004 Lives in UK 361 posts Gave thanks: 6 Thanked 14 times	If you are UK based and expenditure (things you pay for) added to incomings (what you sell) exceed 63k in a year or are expected to exceed then you should be vat registered. You cannot charge VAT unless you are registered You have to assess whether the service you are providing (being totally virtual) attracts VAT... It is not easy to work out and if you think 63K is a lot...how about... Buy in the parts for a storage server = 3000 Build the server Sell the storage server = 5000 Total for tax man purposes = 3000 + 5000 = 8000 so, you only need to sell 8 and you are on mandatory VAT. __________________ D17/D21/P59/P62/VPSX - "Faith can move mountains" (Faiths a big girl....) - I'm not paranoid, I know they are out to get me! Last edited by Neil; January 7th, 2008 at 2:07 PM..

January 7th, 2008, 2:06 PM	#7 (permalink)
removed Surpass Abuse Admin Super #1 Joined in Mar 2005 Lives in Houston, TX Hosted on NONE 7,797 posts Gave thanks: 11 Thanked 278 times	Very few of us can give you accurate advice that should be taken seriously if you plan to have a serious hosting business. You really should contact an accountant about these regulations... __________________ Unofficial IRC Channel: #surpass EFNet Unofficial = No official support. Support requests can be submitted to our helpdesk.

January 7th, 2008, 2:22 PM	#8 (permalink)
Neil Surpass Fan On a golden path... Joined in Oct 2004 Lives in UK 361 posts Gave thanks: 6 Thanked 14 times	Agreed Removed, there are far too many pitfalls and changes with the wind. __________________ D17/D21/P59/P62/VPSX - "Faith can move mountains" (Faiths a big girl....) - I'm not paranoid, I know they are out to get me!

January 7th, 2008, 2:24 PM	#9 (permalink)
Dannycg =] Comfy Contributor Joined in Nov 2007 Lives in UK. Hosted on Pass78 122 posts Gave thanks: 5 Thanked 9 times	No im not planning on a serious hosting business, its just a site to host a few friends paying at about $10 a year but it was a comment Jem had on her site that made me worried about it but im not charging VAT OR earning serious money OR earning more than i pay out to you guys, __________________ Pass78 Last edited by Dannycg; January 7th, 2008 at 2:26 PM..

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