Quote:
Originally posted by SMHarman
AOL could not colocate servers - if they did they would be hosting out of the UK and be forced to charge VAT. AOL automatically makes 17.5% more than most ISPs as their servers are based in the US. They have no hardware in the EU.
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Not true. From 1st July all companies that offer internet services to EU customers have to charge VAT. If the company is located within an EU country then they can charge the VAT rate for that country for all EU customers, rather than country specific VAT rates.
For this reason, AOL UK (or is it AOL Europe) have set up their operations in Luxembourg as their VAT rate is 15%. So from 1st July AOL will be charging all EU customers 15% VAT (currently they are absorbing this increase in cost into their existing rates)
I see no reason why AOL couldn't have hardware located in the UK - their registered office would still be in Luxembourg.
Duncan