GoDaddy expired auction taxes

[anf]

So, here is the thing: when i win a GD expired domain auction, godaddy charges approx 20% taxes. As a result, if, for example, i plan to spend $500 on a domain name, i cannot bid more than $400. At the same time, other platforms (like namejet) do not charge any taxes, so i prefer to buy domains there.

Does this taxes thing happen to anybody else? Is there any way to avoid those taxes?
Thanks.

 

[anantj]

So, here is the thing: when i win a GD expired domain auction, godaddy charges approx 20% taxes. As a result, if, for example, i plan to spend $500 on a domain name, i cannot bid more than $400. At the same time, other platforms (like namejet) do not charge any taxes, so i prefer to buy domains there.

Does this taxes thing happen to anybody else? Is there any way to avoid those taxes?
Thanks.

Which country are you based out of?

 

[anf]

hey, it's russia

 

[urlurl]

must be country specific

 

[wwwweb]

Putin has to pay for those facebook ads somehow...

 

[anf]

Putin has to pay for those facebook ads somehow...

So, you think that GoDaddy pays those taxes to putin? Why the hell would Godaddy do that? They are US based and should not care.

 

[urlurl]

Subtotal: $19.17
Tax: $0.00

my last auction purchase

 

[xyo]

I don't know exactly how it is for Russia, but a few years ago (I think sometime around 2015) the European Union made a new law, that no matter in which country a company is based (even outside EU) they are required to charge VAT (percentage of the customers country) from any person inside the EU for purchasing services or virtual goods online.

I suppose Russia has a similar law, thus Godaddy charges the VAT for any purchase.

I also noticed that by far not all US-based companies actually do that and I still haven't found out why.
If either they just don't care about it or if it has any significance whether they offically do business in that country or not.
Anyway, nothing much you can do about it :/

 

[anantj]

Yes. This is the case in India as well. We're charged 18% tax (GST) for all purchases which makes domain acquisitions, especially auction purchases, so much more expensive

 

[anf]

I also noticed that by far not all US-based companies actually do that and I still haven't found out why.

Why should they care about third-party country laws?

Subtotal: $19.17
Tax: $0.00

my last auction purchase

Hey, are you in US?

 

[urlurl]

nope, canada. and i do get charged tax when i buy .ca's

 

[CryptoInvestor]

I’m in US and my fee is usually right around 14 cents a puchase