As you may recall, as of 1st January 2021 we have been forced to begin charging VAT on our hosting services when supplied to EU nationals, due to the complicated and completely unnecessary red tape of the ‘Place of Supply’ VAT rules.
At the time, we promised not to burden our customers with the increased costs of this until 31st March 2021. We have taken some time to assess the impact of these costs on our business, and as a result I am pleased to announce that we’ll be continuing to absorb the costs of EU VAT charges for the rest of 2021.
This means that the price you pay will not increase as a result of VAT, and as a result our pricing will remain consistent for all of our customers, no matter where you are located. It also gives some additional time for business owners to log into the Valcato Account area and add their VAT number; which will remove these charges completely.
As an example; if your monthly hosting plan is charged at €5.00 and the VAT rate for your country is 20%, for 2021 we will reduce your hosting plan price to €4.17 and add €0.83 in VAT; meaning that your total price will not change. From January 2022, unless you have added a valid EU VAT number to your Valcato Account, your hosting plan price will be reset to €5.00, with €1.00 VAT added for a total of €6.00.
Adding VAT to services such as web hosting will create only a minimal additional expense; we expect many EU clients will only see a difference of about €1 per month, though we appreciate that this isn’t an ideal situation, so if we can do anything at all to help, please do get in contact and we’ll do what we can to assist.
Red tape is never fun. Here at Valcato Hosting we promise to do what we can to minimise the impact on all of our affected users. Thank-you for your understanding, and for your continued business!