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