Hostgator to charge VAT for EU business customers
VAT is Value Added Tax
This will add 20% to hosting charges from now on for UK business customers (not sure what rates apply to other EU countries). I'm surprised that it took them so long to do this.
I guess that I should look for a new host now outside of the EU/USA?
My understanding is that a business customer is anyone earning any income from online business where their web site plays a part e.g. Adsense, or advertising a product/service.
I'm not sure if this charge is fair since the hosting is on servers in the USA and no product is imported to the EU.
If I (EU resident business) buy a gift for a friend in the USA from Amazon.com, do I have to pay VAT?