Question about Nominet and domain costs

[SellMeUrDomain]

My company is considering applying for a Nominet tag to hold our 1K+ UK domains. We don't intend doing business as a registrar, it's just for our own domains.

Does anyone here have any experience with the costings?

I'm unable to explain something. Nominet say they charge a flat rate of £5 + VAT = £6 per domain for two years. That irrespective of how many names you're handling. Presumably other tag holders are paying the same figure.

How come then several registrars are charging a flat £5.70 per domain they sell to the general public for that same two year period?

 

[SellMeUrDomain]

Nobody can help with this question? Wrong forum? Any suggestions on where I should ask?

 

[vc]

Maybe they don't have to pay VAT so they are still pocketing £0.70?

It's also common for registrars to offer registrations at cost or even below cost. Especially the big boys.. maybe one of those cases?

 

[SellMeUrDomain]

Thanks for your reply, VC, but they are UK based registrars so they'd have to pay VAT.

Was just looking at your signature. Are you registered at Nominet with your own IPS tag?

 

[Kate]

Can't the VAT be claimed back ?

 

[SiberForum]

I suppose if you are going or want to be accredited domain name registrar you need to visit ICANN official web site and (or) contact them for what should be prepared to start the process.

 

[SellMeUrDomain]

Siberforum, I'm confused, I don't see what connection ICANN has with anything in the OP.

sdsinc, that's not how VAT works, a business model relying on claiming back the VAT would fail very quickly.