I just skimmed through last few pages, and I think people are complaining about non-existence issue here. They are charing VAT because they don't know what your plan is at the end of hosting service; whether you want to continue hosting or you want your cards back (you paid full price for them, remember?). They are doing this to protect themselves, and if it is something you disagree with, I'd just request a refund before it's too late. Maybe they could work something out with you to ensure your cards will always stay in the US (like an agreement to sell at market price or donating them to a data center or something in the event of hosting service going belly up), just something to think about.
That's illegal, period.
They run established buisiness companies, they're not small time DIYers out of a developping country.
I don't see how that is illegal because the cards WILL eventually go to EU (dealing with VAT up front is less hassle for both parties in my opinion). Unless there is an agreement to ensure that cards will stay in the US, only then charging VAT for EU MIGHT be illegal. I don't work for ALLMINE; just my personal view on the whole VAT thing.