Post
Topic
Board Mining (Altcoins)
Re: ALLMINE INC - FPGA Cryptominer
by
GPUHoarder
on 14/07/2018, 16:43:00 UTC
https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules-topic/chargeable-event-chargeability_en
Importation of goods from outside the EU
Basic rule
The chargeable event occurs – and VAT becomes chargeable – when the following types of goods enter the EU:


That's just above. VAT is calculated on the value of one good when it enters the UE.

If the actual price of the BCU1525 is unchanged at 3600USD after hosting at mineority (1,2 or 3 years) -at the day of shipping-, then the VAT is due on 3600USD.

Keep in mind that some 2nd hand market goods can see their value increase eg rare cars, luxury goods, vintage items...
...which is why fpga.land's charging me VAT on an item that isn't shipped to the EU (because it will be hosted) at 20% on the new price is wrong on two accounts.

I have asked them to refund me that VAT.

We shall see.

Sorry that is not the way VAT works on collocation services. I’ve spent years dealing with this. It is not an import tax, it is a consumption tax on EU citizens. It does not matter that a US company is selling.

As such, when you buy a 1525 and it is placed into service (consumption) you pay VAT, and when you pay for it to be hosted that service is also VAT charged - all of which must be collected and remitted by us, otherwise we get audited they see the sales to EU customers and WE are responsible for the VAT. I’ve been through it.

When it is ultimately shipped to you we do a DDP.

Even if you should consider that the hosting service is consumed at destination of the EU, the VAT applies only on the hosting, that is the service. There can not have any VAT on the BCU1525 until it's delivered to the EU.

I’m happy to have your accountant argue with our accountant, but on our end we have to do what the professionals we pay to handle all this tell us. I’ve had to eat $500k in VAT before because someone “didn’t think we were supposed to charge it.”, and I won’t do that again.