Recently TinyHosting started charing VAT to UK customers.
All UK customers have to pay VAT on our products & services. Businesses who are VAT registered can claim the cost of VAT back.
So what has this meant and what has changed? Well basically all our prices include VAT for UK residents. None UK residents don’t pay VAT and therefore the price shown is the price you pay.
Basically we cover the cost of VAT for UK residents included in the price shown and for none UK residents the price shown is the price you pay.
We feel this is the easiest way to display our prices without the need to increase.
You may notice that customers from EU states cannot sadly sign up to TinyHosting Limited currently due to EU VAT MOSS. We’ve taken this decision with a lot of thought. Currently by selling to EU countries we have to charge VAT for that country which varies from country to country and therefore results in less profit for us.
Long term we could show our prices excluding VAT so for example our £2 bronze hosting would therefore exclude VAT so for the UK this means the cost goes up by 20p per month which covers the cost of VAT.
For some customers prices would rise by up to 25% due to VAT in the EU and for some 17%. You can see here on Wiki the different rates. Potenially we could loose up to 25% of our profit. Profit margins on Web Hosting products are very minimal so it’s not worth us doing so.
However should you live in an EU country you can still buy from us as long as you have an address outside of the EU excluding the UK.