Question

Do the droplet prices include tax?

  • Posted July 25, 2014

As the title says: Do the droplet prices include tax?

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That’s not a very useful answer if I may say so.

VAT is chargeable on service provision in the UK where, if it is registered, payment to HM Revenue is the responsibility of the service provider - and I assume DO is so registered because UK turnover will undoubtedly exceed the statutory threshold and is need in order to reclaim VAT inputs .

If there is ‘no tax included’ in the droplet prices and DO gets wacked for a massive VAT bill for its UK data centre services provision can we expect DO to seek recovery from its customers?

I have no doubt similar considerations apply to data centre service provision in other jurisdictions too.


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Droplets are a service, so there is no tax included.