Dynadot

discuss VAT/Sales tax paid by the buyer?

NameSilo
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NXDomains

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Hello all,

I'm not sure of the American situation with sales tax, but here in Europe we pay VAT (Sales) tax when we register a domain on GoDaddy. I don't know if this is the case with all registrars, as I recently registered a domain on Dynadot and VAT was not mentioned. Confusing.

My question comes in relation to selling domains to businesses with outbound marketing. I want to be able to answer any questions that the buyer may have, and if they're in Europe they may ask if the price includes VAT. If I was selling on GoDaddy marketplace then I would answer no, as I have read elsewhere on this forum that the buyer will be charged VAT by GoDaddy, on top of my sale price. But how does this work out on escrow services like escrow.com, Sedo, or Epik? If I can't give a clear answer to the buyer's question, I would feel unprofessional.

If anyone with experience selling to European buyers (or buyers elsewhere who may have to pay tax) can provide any info, that would be great. Thanks!
 
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I'd like to know too. The whole tax situation is very confusing. I've asked questions on here before and never had clear answers.
 
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Are you an outbounder and have you sold to UK/EU buyers? If so any questions from them about VAT?
 
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I've never been asked about VAT from anybody I've sold domains to and subsiquently have never charged it or invoiced it. I belive it would be a different matter if I were a company as I would be be VAT registered in the UK.
 
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Thanks for your input! It's strange to me that no buyer would ask, as if they are a business, they would look to claim back some of their purchase via VAT...
 
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Thanks @NXDomains

I believe it comes down to your jurisdiction where you have legal presence.

Epik does not maintain a European registered entity. As such, we do not collect VAT.

It is an important topic, as the amounts are not immaterial, especially when buying premium domains.
 
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Thanks @NXDomains

I believe it comes down to your jurisdiction where you have legal presence.

Epik does not maintain a European registered entity. As such, we do not collect VAT.

It is an important topic, as the amounts are not immaterial, especially when buying premium domains.
It becomes even more complicated when the seller and buyer are in different jurisditions and more complicated still if the marketplace (middle man) is in yet another jurisdiction.
 
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I made a sale to a UK based buyer two weeks ago through Uniregistry. Nowhere during or after the transaction was tax mentioned.

As @Rob Monster said, it depends on the jurisdiction of your registrar/marketplace. If you are using a European Union based registrar or marketplace, you are more likely to encounter VAT/tax issues.

Still curious though, because Europe based platforms like SEDO never asked VAT too. Could it just be GoDaddy and their cumbersome ways of doing business? I see they are fond of trying to add all nonsense products to you at additional cost whenever you try to register a domain. And VAT may just be one of their numerous nonsense addons.
 
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