Afternic - Official Thread

[GoDaddy]

Hello NamePros!
By popular demand, we have launched a dedicated feedback thread for Afternic, the GoDaddy-owned domain name marketplace.

We have created this thread as a way for you to tell us what works, what doesn't work, and what features you'd like to see at Afternic (please be constructive with your feedback). We're looking forward to hearing from the domain investment community to help us shape the future of Afternic.

We will also be sharing Afternic product updates in this thread.

Please note that this thread is not meant for support. Please email our support team at [email protected] for assistance.

 

[NameFinest]

Before complaining on a forum, I would:
Step 1. Contact Afternic support.

Funny because I did this already mire than 1 year ago and nothing changed

 

[NameFinest]

I'd contact them and ask for an explanation. They shouldn't be charging VAT on something they didn't sell. The name is yours. The profit they make is the commission they charge you. That's the service they provide so if they were to charge VAT on anything it should be on the commission and chargeable to you the seller, not the buyer.

Their books must be all over the place. Say you sold a name for 1000 bucks, they charge you 200 bucks in commission and charge the seller 200 bucks in VAT. Now they've made 200 bucks from your sale and charged 100% VAT.

Yes exactly, I'll try to open another ticket. Thank you

 

[JB Lions]

We back, emails coming again.

Authorize your participation in Afternic.

And we're not back.

So finally get auth email, click Authorize, check domains and Fast Transfer is now on.

Now today, all domains are in Pending Review with Fast Transfer off.

I also added 2 fresh, never on Afternic domains today few hours ago. No auth email yet. Update - This worked today, just arrived.

---------------
Also, and other people have mentioned seeing this on the:

https://www.afternic.com/dashboard page

I have a domain that I sold back in 2023 just not wanting to leave my afternic homepage, I guess it's attached to me

You have 1 inquiry on your domains for sale

Domain	Date Updated	Broker Activity
domaineditedout.com	2023-10-19	Message Received (1)

Can't make it go away, it has another owner now, it's like some stalker domain.

 

[DomainRecap]

They shouldn't be charging VAT on the sale price unless you(the seller) are VAT registered in your country. I've never understood their "fees and taxes" and dispite asking multiple times nobody from GD has been able to explain them to me either.

I think the key is that if you're not a business, then GD is buying the domain from you, and then reselling it to the customer.

 

[OceanKing]

i have another small question.

When the sale lander is "Request Price" why should gd search path shows "Make Offer".
It should be "Request Price" is it?

 

[D Haynes]

I think the key is that if you're not a business, then GD is buying the domain from you, and then reselling it to the customer.

I remember looking in to this and their terms specifically state they are not the domain seller.

 

[D Haynes]

I think the key is that if you're not a business, then GD is buying the domain from you, and then reselling it to the customer.

 

[Jannes]

VAT HELL is a combination of complex VAT rules (and possibly interpretations) when it comes to cross-border supply of digital services, GoDaddy being (wanting to be) VAT compliant and buyer privacy protection. I believe that to simplify things, Afternic is acting as if they were our buyer.

(remember when Dan.com became a middleman transacting party sometime in 2023?)

 

[Jannes]

i have another small question.

When the sale lander is "Request Price" why should gd search path shows "Make Offer".
It should be "Request Price" is it?

That's how they've designed it. If you set a BIN price, GD search result will show that, regardless of the lander.

 

[D Haynes]

VAT HELL is a combination of complex VAT rules (and possibly interpretations) when it comes to cross-border supply of digital services, GoDaddy being (wanting to be) VAT compliant and buyer privacy protection. I believe that to simplify things, Afternic is acting as if they were our buyer.

(remember when Dan.com became a middleman transacting party sometime in 2023?)

Is this stated anywhere in their legals? I've never seen anything to suggest AN/GD are buying our names from us to sell to buyers. This would open up lots of grey areas with regards to returns etc.

None of the other large marketplaces are like this to my knowledge. For example if a buyer requires a VAT receipt at Sedo it's down to the seller to provide it (if they're VAT registered) and Sedo just passes it on.

 

[D Haynes]

Maybe @GoDaddy could chime in and explain the VAT calculation process with AN sales.

 

[davidc1]

@GoDaddy
I'm unable to export my portfolio, it seems it's buggy for big portfolios...

 

[Jannes]

Is this stated anywhere in their legals? I've never seen anything to suggest AN/GD are buying our names from us to sell to buyers. This would open up lots of grey areas with regards to returns etc.

None of the other large marketplaces are like this to my knowledge. For example if a buyer requires a VAT receipt at Sedo it's down to the seller to provide it (if they're VAT registered) and Sedo just passes it on.

"as if they were our buyer", I think the legal stuff here is between GoDaddy (or any marketplace) and tax authorities.

Sedo reveals the identities of transacting parties.

 

[D Haynes]

"as if they were our buyer", I think the legal stuff here is between GoDaddy (or any marketplace) and tax authorities.

Sedo reveals the identities of transacting parties.

There's a big difference between "as if they were our buyer" and actually being our buyer though, legally.

In my opinion Sedo are doing it the right way (basically the same as eBay).

 

[davidc1]

There's a big difference between "as if they were our buyer" and actually being our buyer though, legally.

In my opinion Sedo are doing it the right way (basically the same as eBay).

Sedo is unable to manage VAT, they sell without VAT, even if the seller/buyer have to pay VAT to authorities on transactions.

 

[Jannes]

The language used in EU VAT law to describe marketplace operators varies, sometimes referring to them as “platforms” or “electronic interfaces or portals.” In the EU, only some of these marketplace operators are liable to collect VAT. Marketplace operators that need to collect VAT on sales they facilitate are described as “deemed sellers” because they are “deemed” to be selling goods and services to the customer.

VAT law imagines these transactions through a deemed seller as two sales taking place consecutively. The seller supplies goods or services to the marketplace operator, who then supplies the goods or services to the customer – even if the marketplace operator never had the goods in its possession.

Marketing operators that don’t need to collect VAT are called “intermediaries.” They provide intermediary services without conducting the transaction. In this case, the intermediary isn’t responsible for collecting any tax on behalf of the seller. Collecting and remitting VAT is the seller’s responsibility.

https://stripe.com/en-fi/guides/understanding-the-tax-obligations-of-marketplaces-in-the-eu

 

[D Haynes]

Sedo is unable to manage VAT, they sell without VAT, even if the seller/buyer have to pay VAT to authorities on transactions.

This is how I imagine it should be.

 

[D Haynes]

https://stripe.com/en-fi/guides/understanding-the-tax-obligations-of-marketplaces-in-the-eu

Thanks that's very informative! So for VAT registered sellers who would themselves add VAT to a sale, does AN/GD not add their own or does it get double taxed? I don't understand why they complicate it when they could handle sales like Sedo or eBay.

The wording in their Terms wipes their hands of all obligation or liability yet the content you posted says they act as if they are the seller. Seems contradictory.

 

[Jannes]

As a private seller (hobbyist domainer) I don't know if this is simplifying or complicating things for VAT-registered businesses, but in the end it's what tax authorities want. This is in the US (sales tax collection):

https://www.taxually.com/blog/what-are-marketplace-facilitator-laws-and-how-do-they-impact-sellers

 

[davidc1]

This is how I imagine it should be.

So, how could it be possible to price domains ? Sometimes you have to remit VAT but customer never pay it.
Another thing is that most of the time sedo dont share the end user when the domain is sold through MLS, so you have the name of "namecheap" for example witch is US (no VAT for me as I'm european), but the end user could be a european with VAT number, in this case I have to declare autoliquidation, or it's without VAT number european, in that case I have to pay VAT for authorities. I had a tax control last year, it was a mess...